Rio Tinto takes full ownership of Diavik diamond mine in Canada

Rio Tinto Group took full ownership of the Diavik diamond mine in Canada's Northwest Territories by acquiring the 40% stake held by Dominion Diamond Mines in a transaction approved by the Court of Queen's Bench of Alberta.

The transaction follows a 19-month process that started in April 2020 after cash-strapped Dominion Diamond filed for insolvency protection. In June 2020, Dominion Diamond sued Rio Tinto unit Diavik Diamond Mines Inc. over an alleged breach of contract. Dominion Diamond is a subsidiary of The Washington Cos.

Rio Tinto said Nov. 18 that it acquired the remaining Diavik assets held by Dominion Diamond, including unsold production and cash collateral held as security for the mine's closure costs. In exchange, Rio Tinto released Dominion Diamond and its lenders from all outstanding liabilities and obligations to fund the operations or their closure.

Production at Diavik is expected to end in 2025, after starting in 2003, Rio Tinto said. The mine produced 6.2 million carats of rough diamonds in 2020.