Dominion Diamond Corporation Completes Assessment of the Process Plant Fire at the Ekati Diamond Mine
June 29 2016 - 5:30AM
Business Wire
Dominion Diamond Corporation (TSX:DDC, NYSE:DDC) (the “Company”
or “Dominion”) reports that it has completed an assessment of the
damage from the fire that occurred in the process plant at the
Ekati Diamond Mine on June 23rd. Dominion can confirm that the
damage was limited to a small area, with no damage to the main
structural components. The repairs to the plant are expected to
take approximately three months, after which the plant is expected
to resume operations at full capacity.
The Company has begun to execute a plan to reduce operating and
capital costs during this time, which will include an adjustment of
mining operations to pause mining at lower priority and lower value
ore bodies, a deferral of non-essential sustaining capital, and a
temporary layoff of affected staff across the Company.
The Company will continue to mine higher value material during
the process plant shutdown. Ore mined during the process plant
downtime will be stockpiled, with the intent to prioritize the
processing of the highest value material when the plant resumes
operations.
Brendan Bell, Chief Executive Officer, stated: “After taking a
full and careful assessment, we are taking the most prudent course
of action which delivers limited, ongoing mining of higher value
ore, while also taking the necessary steps to make repairs and
return to production and preserve capital. We would also like to
thank our employees for their actions and commitment to resolving
this situation quickly and efficiently."
The Company is updating its production and
cost expectations for the fiscal year, and expects to provide
an update of the fiscal year guidance in the coming week. The
Company also plans to hold a conference call for investors,
analysts and other interested parties following the release of this
updated guidance.
Forward-Looking InformationCertain information included
herein that is not current or historical factual information,
including information about the estimated timeline to complete
repairs to the Ekati process plant, expected adjustments to the
current mine plan and mining operations, and expected reductions in
operating and capital costs constitute forward-looking information
or statements within the meaning of applicable securities laws.
Forward-looking information is based on certain factors and
assumptions including, among other things, management’s assessment
of the extent of damage to the Ekati process plant and the
estimated timeframe to complete the necessary repairs. These
assumptions may prove to be incorrect. Forward-looking information
is subject to certain factors, including risks and uncertainties,
which could cause actual results to differ materially from what the
Company currently expects. These factors include, among other
things, the risk of delays in completing the repairs to the Ekati
process plant and risks associated with the remote location of and
harsh climate at the Ekati Diamond Mine. Readers are cautioned not
to place undue importance on forward-looking information, which
speaks only as of the date of this disclosure, and should not rely
upon this information as of any other date. While the Company may
elect to, it is under no obligation and does not undertake to,
update or revise any forward-looking information, whether as a
result of new information, further events or otherwise at any
particular time, except as required by law. Additional information
concerning factors that may cause actual results to materially
differ from those in such forward-looking statements is contained
in the Company's filings with Canadian and United States securities
regulatory authorities and can be found at www.sedar.com and
www.sec.gov, respectively.
About Dominion Diamond CorporationDominion Diamond
Corporation is the world’s third largest producer of rough diamonds
by value. Both of its production assets are located in the low
political risk environment of the Northwest Territories in Canada
where the Company also has its head office. The Company is well
capitalized and has a strong balance sheet.
The Company operates the Ekati Diamond Mine and also owns 40% of
the Diavik Diamond Mine. Between the two mining operations,
diamonds are currently produced from a number of separate
kimberlite pipes providing a diversity of diamond supply as well as
reduced operational risk. It supplies premium rough diamond
assortments to the global market through its sorting and selling
operations in Canada, Belgium and India.
For more information, please visit
www.ddcorp.ca
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Dominion Diamond CorporationInvestor
RelationsMs. Kelley Stamm, (416) 205-4380Manager, Investor
Relationskstamm@ddcorp.caorMedia
RelationsMs. Laura Worsley-Brown, 867-669-6105Senior
Advisor, External Relationslaura.worsley-brown@ekati.ddcorp.ca