SourcingMar 02, 2023
Rio Tinto Making $40M Investment in Diavik Diamond MineSourcingMar 15, 2023
Canada’s Ekati Diamond Mine to Get a New Owner
Australian mining company Burgundy Diamond Mines announced plans to buy the mine in a deal valued at $136 million.
Workers in the underground portion of the Ekati Diamond Mine, which is currently owned by Arctic Canadian Holdings LLC. On Tuesday, Burgundy Diamond Mines announced plans to buy Ekati from Arctic for $136 million. (© 2017 Dominion Diamond Mines)
Calgary, Alberta—The Ekati Diamond Mine in Canada’s Northwest Territories is poised to change hands again.
On Tuesday, Burgundy Diamond Mines Ltd. announced it had entered into an agreement with Arctic Canadian Holdings LLC to buy Arctic Canadian Diamond Co. Ltd. and Arctic Canadian Marketing N.V. in a deal valued at $136 million.
The acquisition is subject to shareholder approval and other customary closing conditions.
The Arctic Companies are the owners of Ekati, handling both mining at the site as well as the sorting, marketing, and sales of rough diamonds from the mine.
The Arctic Companies are comprised of a trio of investment firms that purchased the mine in 2021 following the collapse of Dominion Diamond Corp. during the COVID-19 pandemic.
Based in Perth, Western Australia, Burgundy is the company reviving the Ellendale Mine in Western Australia.
Burgundy CEO Kim Truter called the acquisition “exciting and transformational,” noting it has the potential to generate greater returns for the company’s shareholders.
It also will make Burgundy the largest diamond company listed on the Australian Stock Exchange, and one of the largest listed globally, the company said.
“The acquisition of Ekati is complementary to Burgundy; we’ve been purchasing rough fancy-colored diamonds from Ekati in recent years, then cutting and polishing them in our facilities in Perth to go into high-end jewelry designs, as part of our vertically integrated business model,” he said.
“We view this acquisition as a wonderful marriage between Burgundy and the Arctic Companies, delivering immediate and meaningful production to our portfolio, with potential synergies to leverage and efficiencies to capitalize on in the short term.”
Ekati, a name that means “fat lake” in the First Nations language of Tilcho, has been in operation since October 1998, with exploration and development activity at the site dating back to 1981.
There are two active mining operations at Ekati, the Sable open pit and the Misery underground.
In 2022, the mine sold 4.2 million carats with an average price of $117/carat. The Arctic Companies’ revenue totaled $494 million.
Burgundy noted the current global supply and demand trends, “support a favorable long-term pricing outlook for rough diamonds.”
The current life-of-mine plan calls for Ekati, which is located about 125 miles south of the Arctic Circle, to operate until 2028. The plan includes the addition of a new open-pit development at Point Lake.
More on Sourcing
The Latest
Recorded WebinarsMar 31, 2023
Watch: How Is the Industry Doing When It Comes to Diversity?Annie Doresca and Michelle Graff welcome Reggie Johnson and Sheryl Jones for a frank conversation on the state of DEI in fine jewelry.
MajorsMar 31, 2023
Macy’s Longtime CEO to Retire Next YearJeff Gennette will step down in February 2024, passing the torch to the CEO of another notable retailer.
AuctionsMar 31, 2023
Piece of the Week: The Extraterrestrial Lunar NecklaceArtisan Martin Roberts fashioned lunar meteorites into 48 beads to create this out-of-this-world necklace.
Brought to you by
Full Disclosure at Your FingertipsDistinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.
MajorsMar 31, 2023
JBT Re-Elects Richard Katz as Board ChairmanAs for new members, the organization welcomed Jewelers of America’s Annie Doresca and Parag Jain of Parag Diamonds.
Weekly QuizMar 31, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
WatchesMar 30, 2023
At Watches & Wonders, a $20M Watch Makes Its DebutJacob & Co.’s new “Billionaire” timepiece features more than 200 carats of yellow diamonds.
AuctionsMar 30, 2023
See the Jewelry Collection Expected to Top Elizabeth Taylor’s at AuctionHeidi Horten, wife of department store magnate Helmut Horten, collected jewelry from Bulgari, Cartier, Harry Winston and Van Cleef & Arpels.
Brought to you by
Bringing Over 130 Years of Diamond Expertise to Modern GradingDe Beers Institute of Diamonds provides the very best in diamond verification, education and diamond services.
MajorsMar 30, 2023
Jewelers Mutual Marks a Major MilestoneThe jewelry industry insurer and solutions provider is celebrating 110 years in business this month.
SurveysMar 30, 2023
NRF Says Brick-and-Mortar Stores Remain ‘Primary Point of Purchase’The statement came as the National Retail Federation released its retail sales forecast for 2023.
AuctionsMar 29, 2023
10.57-Carat Purplish Pink Diamond Expected to Sell for $35M+Sotheby’s will auction the diamond, which it says is “arguably the most significant pink diamond to ever appear at auction,” in June.
MajorsMar 29, 2023
Blue Nile to Close Fulfillment Center, Lay Off WorkersThe retailer, recently acquired by Signet Jewelers, will lay off 119 employees in July.
WatchesMar 29, 2023
See All the New Patek Philippe Watches for 2023The Swiss watchmaker introduced 17 new models at Watches & Wonders Geneva.
MajorsMar 29, 2023
Mark Henry Jewelry Offering Complimentary ‘Masterclass’ on Sales from Peter SmithAs part of the promotion, Smith will share his sales expertise during a 90-minute training session.
EditorsMar 28, 2023
I’m Enchanted With Parmigiani Fleurier’s Perfect Travel WatchAt Watches & Wonders, the Swiss brand unveiled a follow-up to last year’s Tonda PF GMT Rattrapante.
CollectionsMar 28, 2023
Helzberg’s New Lab-Grown Diamond Collection Earns SCS CertificationThe “rêve” collection’s engagement rings and wedding bands are geared toward “sustainability minded customers.”
EditorsMar 28, 2023
This New Rolex Day-Date Tells Time … and AffirmationsA new word appears on the dial each day of the week.
IndependentsMar 28, 2023
D.C. Jeweler That Honored 50-Year-Old Gift Certificate Closes Bensons Jewelers closed for good Feb. 24, impacted in part by the decline in foot traffic downtown since the onset of the pandemic.
MajorsMar 28, 2023
Swarovski Names New GM of North AmericaKolja Kiofsky has been with the crystal and jewelry company since 2010.
AuctionsMar 27, 2023
Jewels to Shine in Upcoming ‘Golden Age’ of Hollywood AuctionThe Kruse GWS Auctions sale will include the replica “Taj Mahal” necklace Elizabeth Taylor made with Avon as well as a costume piece Marilyn Monroe wore.
MajorsMar 27, 2023
Pandora Promotes GM to Chief of Retail OperationsMassimo Basei is moving up, while Chief Commercial Officer Martino Pessina is stepping down.
Events & AwardsMar 27, 2023
Registration Is Open for the HardRock SummitAGTA GemFair and the Denver Gem & Mineral Show also will have a presence on the show floor.
AuctionsMar 24, 2023
Piece of the Week: The $5.8M Patek Philippe ‘Sky Moon Tourbillon’Sold by Christie’s Hong Kong, this masterwork of complications now holds the record for most expensive watch ever auctioned online.
FinancialsMar 24, 2023
Movado Predicts Declining Sales Amid ‘Volatile’ Retail EnvironmentThe watch company expects first-quarter sales to fall as much as 15 percent due to inflation and tough comps.
Lab-GrownMar 24, 2023
Lightbox Promotes General Manager to COOAdam O’Grady, general manager of the Lightbox Lab, has taken on the new role and will report directly to Lightbox CEO Antoine Borde.
WatchesMar 23, 2023
Which Brands Do Watch Enthusiasts Love Most? Chrono24 Takes a LookThe watch marketplace gathered data from 1.3 million collectors, highlighting the most popular timepieces and exploring value appreciation.
GradingMar 23, 2023
GCAL Introduces 8X Cut Grade for Proprietary CutsPatented and specialty cuts now can receive an 8X Proprietary Certificate, which can be customized to include a company’s brand and logo.
