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CBC News Reports Dominion Diamond Is Suing Diavik July 15, 2020 (0 comments)
British Columbia, Canada—Divorce is nasty even in a diamond mine.
Dominion Diamond has sued Diavik Diamond Mines Inc. (DDMI). The two were partners in the Diavik diamond mine in Canada’s Northwest Territories. Dominion is alleging DDMI managed the mine to the benefit of its majority owner, Rio Tinto, and to the detriment of Dominion.
CBC reported the lawsuit was filed last week with the Supreme Court of British Columbia (where Dominion is headquartered, not where the mine is located.) Dominion, which has filed for creditor protection (like Chapter 11 bankruptcy in the United States), alleges Diavik’s actions in the mine partnership hastened its liquidity crisis as revenues from both Diavik and its other mine, Ekati, plummeted in the wake of the COVID-19 pandemic.
Related: Dominion Diamond CEO Exits