May 10, 2018

Jay Pipe Expansion at Ekati Faces Further Delays

Media reports emanating out of Canada say that expansion work on the Jay pipe at the Ekati mine may be further delayed.

Earlier, Dominion Diamond Corporation (owner of the Ekati Mine; subsequently taken over by Washington Companies in November 2017 and now known as Dominion Diamond Mines) had planned to commence expansion work in the summer of 2016; but had deferred the plan till 2018.  Now, it is learnt that development of the project may be further delayed.

Canada’s public broadcaster, CBC (Canadian Broadcasting Corporation) reported that the Company told CBC News that it is “slowing down its Jay pipe project at Ekati mine”. Further, the report added, “A company official said in an email that work planned for this year has been put on hold, while the company studies how the project's profitability can be increased.”

No alternative timeline has been put forward, and it is understood that work has been put off till further notice.

The Jay pipe, seen as an underdeveloped pit with the greatest potential, was expected to extend Ekati mine’s life to 2033.  Currently, it is estimated that Ekati’s reserves will be depleted by 2020.