The owner of the NWT’s Ekati diamond mine has set out its opening steps after securing a $115-million federal loan, including the closure of part of its business.
In an announcement to the Australian Securities Exchange, Burgundy – which has Canadian headquarters in Calgary but is listed in Australia – said it will close its office in Antwerp.
While Antwerp is a global diamond trading hub, Burgundy said shutting down that office “will deliver significant cost savings.”
The company, which was at risk of bankruptcy without last week’s federal intervention, has already said it will restart Ekati as a smaller operation than it has been in the past.
In its ASX filing, Burgundy said preparations are under way to resume mining at the Sable open pit and complete the infrastructure needed to process ore mined a decade ago from the Fox pit.
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Operations at Ekati’s Point Lake pit “remain paused pending improvement in diamond prices for Point Lake product,” Burgundy said.
The ASX filing also discloses more about the “significant financial restructuring” Burgundy has undergone to satisfy Ottawa before the loan was issued, including changes to how its existing debt will be treated.
