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

The cost of repairing Ekati diamond mine's process plant following a fire last month is estimated at $25 million,according to a news release today from Dominion Diamond Corporation.

The company says the estimate is preliminary and may change as the repair activities progress, and thatit isworking with its insurance claims adjusters.

The release said that temporary layoffs of about three months would affect about330 temporary and permanent contractors,and employees.

Mining activities have been suspended at the Pigeon and Lynx pits but are continuing at theMisery open pit and Koala underground. It said theMisery and Koala material will be stockpiledwith the intention of processing a blend ofhigh value Misery Main and Koala ore when the process plant restarts.

In the release, CEO Brendan Bell said this would helpminimizethe impact of the fire on the value ofEkati'sfiscal year production.

Non-essential capital projects, including mobile equipment rebuilds and the expansion of communication and automation systems, have been postponed until the 2018 fiscal year.