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.
SourcingApr 24, 2020
Operator of Ekati Diamond Mine Granted Insolvency Protection
Dominion Diamond Mines also has a 40 percent stake in the Diavik mine.
A file photo of the main camp at the Ekati Diamond Mine. The mine’s owner, Dominion, filed for insolvency protection under the Companies’ Creditors Arrangement Act in Canada this week.
London—Dominion Diamond Mines announced Thursday it has filed for and was granted insolvency protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada.
The CCAA is a federal act that allows financially troubled companies owing more than $5 million to creditors 30 days of protection to financially restructure while avoiding bankruptcy and allowing the creditors to receive some money.
Based in Calgary, Dominion owns the Ekati Diamond Mine and is the 40 percent JV partner in the Diavik Diamond Mine operated by Rio Tinto. Both mines are located in Canada’s Northwest Territories, less than 200 miles south of the Arctic Circle.
In a statement released Thursday, the company said the COVID-19 pandemic was the primary driver behind its filing.
It closed the Ekati mine fairly early on in response to the pandemic, shuttering operations there March 19, citing the disease’s rapid spread, the mine’s remote location and the high frequency of air travel required by staff.
Diavik, which is less than 20 miles from Ekati, is still fully operational, Rio Tinto confirmed.
“Although the company has strong diamond inventory, sorting houses and diamond markets are closed,” Dominion said. “These are key channels to facilitate the sale of the company’s inventory, so currently there is no ability to generate sufficient revenue to support Dominion’s ongoing financial obligations.”
The Washington Companies, which bought Dominion in 2017, offered to provide debtor-in-possession financing to provide it liquidity through the CCAA process in exchange for Dominion agreeing to a memorandum of understanding (MOU) regarding its possible sale to a Washington Companies affiliate as a stalking-horse bidder. Dominion would also be required to solicit other bids to either buy or invest in the company.
Dominion said whether or not it accepts The Washington Companies’ offer, it expects to obtain new financing, emerge from CCAA and reopen.
“As the spread of COVID-19 subsides and diamond markets reopen, Dominion plans to resume mining operations at the Ekati Diamond Mine and safely recall its furloughed workers,” it said. “Dominion continues to believe in the long-term viability of its assets and expects to emerge stronger and better able to deliver value to all stakeholders.”
Rio Tinto declined to comment directly on Dominion’s filing or its options when it comes to the Diavik mine, stating only: “Rio Tinto notes that Dominion Diamond Mines has filed for insolvency protection. Our focus remains on safely continuing our operations amidst the global COVID-19 pandemic.” 
Three rough diamonds mined at Diavik and dubbed “Stars of the Arctic,” the 178-carat “Vega” (left), the 25-carat “Capella,” and the “Altair” at 59 carats. Dominion Diamond Mines holds a 40 percent stake in Diavik.
The news about Dominion Diamond broke the same day De Beers’ parent company Anglo American released production results for the first quarter 2020 and its forecast for the year ahead.
Anglo cut production guidance for De Beers’ diamond mines from 32-34 million carats to 25-27 million carats, noting the drop-off in wholesale diamond trading and consumer traffic in key markets due to COVID-19.
These figures are subject to “continuous review based on the disruptions related to COVID-19 as well as the timing and scale of the recovery in trading conditions,” Anglo said.
In the first quarter 2020, coronavirus had limited impact on De Beers’ production, as shutdown and social distancing measures in producer countries didn’t take effect until the end of the quarter.
As of Friday, all De Beers’ mining operations that had been shuttered were ramping up to reopen.
Spokesman David Johnson said the company’s mines in Botswana and land operations in Namibia are returning to production at lower volumes, and the Venetia mine in South Africa is ramping up to 50 percent workforce.
Off-shore diamond mining in Namibia is operating at lower volumes, and the Gahcho Kué mine in Canada continues to operate but at lower volumes.
Rough diamond production in Q1 totaled 7.9 million carats, down 1 percent from 7.8 million carats a year ago.
Production was down in Botswana by 5 percent to 5.6 million carats, mainly because of work being done at the Orapa mine, and it dropped 19 percent year-over-year to 800,000 carats in Canada, which still had the Victor mine in the first quarter of last year.
In Namibia, diamond production was up 6 percent to 500,000 million carats and in South Africa, production increased 97 percent to 800,000 carats as De Beers mined the final ore from the open-pit Venetia mine—its only remaining mine in the country—before it is transitioned into an underground operation.
De Beers is spending $2 billion to take Venetia underground and expand its life into the 2040s.
Rough diamond sales in the first two rounds of sightholder and auction sales in 2020 were up 19 percent year-over-year, from 7.5 million carats to 8.9 million due to a weak Q1 in 2019.
But De Beers called off the third sight of 2020 as demand plummeted with the spread of COVID-19.
It allowed customers to defer all sight three allocations to later in the year.
Editor’s note: Information in this story about the ownership of the Diavik Diamond Mine was corrected post-publication. The mine is operated by Rio Tinto, not Dominion as previously stated.
The news about Dominion Diamond broke the same day De Beers’ parent company Anglo American released production results for the first quarter 2020 and its forecast for the year ahead.
Anglo cut production guidance for De Beers’ diamond mines from 32-34 million carats to 25-27 million carats, noting the drop-off in wholesale diamond trading and consumer traffic in key markets due to COVID-19.
These figures are subject to “continuous review based on the disruptions related to COVID-19 as well as the timing and scale of the recovery in trading conditions,” Anglo said.
In the first quarter 2020, coronavirus had limited impact on De Beers’ production, as shutdown and social distancing measures in producer countries didn’t take effect until the end of the quarter.
As of Friday, all De Beers’ mining operations that had been shuttered were ramping up to reopen.
Spokesman David Johnson said the company’s mines in Botswana and land operations in Namibia are returning to production at lower volumes, and the Venetia mine in South Africa is ramping up to 50 percent workforce.
Off-shore diamond mining in Namibia is operating at lower volumes, and the Gahcho Kué mine in Canada continues to operate but at lower volumes.
Rough diamond production in Q1 totaled 7.9 million carats, down 1 percent from 7.8 million carats a year ago.
Production was down in Botswana by 5 percent to 5.6 million carats, mainly because of work being done at the Orapa mine, and it dropped 19 percent year-over-year to 800,000 carats in Canada, which still had the Victor mine in the first quarter of last year.
In Namibia, diamond production was up 6 percent to 500,000 million carats and in South Africa, production increased 97 percent to 800,000 carats as De Beers mined the final ore from the open-pit Venetia mine—its only remaining mine in the country—before it is transitioned into an underground operation.
De Beers is spending $2 billion to take Venetia underground and expand its life into the 2040s.
Rough diamond sales in the first two rounds of sightholder and auction sales in 2020 were up 19 percent year-over-year, from 7.5 million carats to 8.9 million due to a weak Q1 in 2019.
But De Beers called off the third sight of 2020 as demand plummeted with the spread of COVID-19.
It allowed customers to defer all sight three allocations to later in the year.
Editor’s note: Information in this story about the ownership of the Diavik Diamond Mine was corrected post-publication. The mine is operated by Rio Tinto, not Dominion as previously stated.
More on Sourcing
The Latest
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.
