Dominion Diamonds, which had asked for, and was granted, creditor protection under insolvency filings earlier this week, is reported by Canadian media as saying that it plans to restart operations at the Ekati mine, once the coronavirus pandemic is behind us.

According to the report, Dominion had stated that as a result of the various restrictions imposed following the outbreak of the epidemic, it has been unable to dispose of its diamonds worth around $200 million. Due to this, the Company is unable to meet its obligations of $16 million to be met this week, and $28 million which is to be paid at the start of May.

Creditor protection has bought time for the Company during which it can either restructure, find new investments, or sell to a new owner in order to meet its obligations, the report said.

Reportedly, Dominion is pursuing a restructuring of its balance sheet in a manner that will enable it to reopen Ekati as soon as the situation allows.

Cabin Radio quoted a Dominion spokesperson as having said in a statement: “As the spread of Covid-19 subsides and diamond markets reopen, Dominion plans to resume mining operations at Ekati and safely recall its furloughed workers.”

The report further said that a Dominion spokesperson had stated that “employees who remain in their posts will keep the same responsibilities, compensation, and benefits without interruption during the creditor protection process”.

“More than 400 employees furloughed last month, as the pandemic hit, will continue to receive their existing benefits while not working,” the report said.

It will be remembered that operations were suspended at Ekati in March, with only a small number of care-and-maintenance staff left on-site.

"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," an earlier press release of Dominion had stated.