Diamond processing at Ekati resumes, three months after fire

Operations at EkatiDiamondMinehave fully resumed, three months after a fire at the processing plant caused a major slowdown.

Dominion Diamonds say plant repairs cost just shy of $20 million, $5 million less than originally anticipated.

"We are very pleased the process plant repairs have been substantially completed ahead of schedule and below our original cost estimate," said CEO Brendan Bell, in a pressrelease sent out on Thursday.

• Ekati diamond mine's process plant repairs to cost $25M

• Morning fire at Ekati diamond mine contained, no one injured

The fire broke out on June 23, during a planned power outage. In the following weeks, the company gave temporary layoff notices to about 300 workers, although they began hiring them back earlier this month.

"To mitigate the impact of the fire on production and cash flow for the current fiscal year... the Company reduced operating and capital costs by deferring mining activities at the Lynx and Pigeon open pits, while continuing to mine and stockpile higher value ore from the Misery Main open pit and Koala underground," the press release explained.

By the time plant operations resumed this week, the company says it had stockpiled 750,000 tonnes of high grade ore.

Giant diamond sells

In the same press release Dominion also announced that the largest diamond ever found at Ekati recently sold for US$2.8 million, or $3.7 million in Canadian dollars.

The 186 carat "gem quality diamond" was found in Ekati's Pigeon kimberlite in early June.

"We are particularly encouraged that this exceptional stone was recovered during the processing of ore mined fromthe early benches of the Pigeon open pit" said Bell.