SOMBA K'E/YELLOWKNIFE
Dominion Diamond Corporation held its first of what is to be many press conferences in Yellowknife this week when the new owner of the Ekati Diamond Mine announced it is moving its head office here from Toronto.
Dominion Diamond Corporation chairman and CEO Robert Gannicott, left, watches Premier Bob McLeod and Industry, Tourism and Investment Minister David Ramsay examine rough diamonds from the company's Ekati Diamond Mine at a press conference on Wednesday at the company's Archibald Street sorting and valuation facility. - Thandiwe Vela/NNSL photo |
Robert Gannicott, chairman and CEO of the company formerly known as Harry Winston Diamond Corp., announced the relocation, and completion of Dominion's US $553-million acquisition of BHP Billiton's 80 per cent stake in the diamond mine on Wednesday.
"This is a day when we're celebrating the creation of a brand new company, actually," said Gannicott. "It's a company that's going to have its headquarters here in Yellowknife. It's not a branch office of somewhere else. This is it."
In addition to the CEO, top management of the company who are moving to Yellowknife include chief financial officer Wendy Kei and the head of Dominion's diamond sorting and sales division.
NWT Power Corporation chairperson Brendan Bell has been named a president of Dominion, responsible for non-direct mining functions such as health and safety, environment, communities, personnel, and external affairs. Bell reports to the chairman and CEO Gannicott.
Dominion Diamond Corporation has about 70 employees worldwide excluding Ekati, which has approximately 1,600 employees.
The relocation of Dominion employees in Toronto, Antwerp, Belgium, and India are on a voluntary basis, so it is not yet known how many will move to Yellowknife.
"I think this is an important step not just for us but for the NWT as well," Gannicott said about the relocation. "This company will have a management that's local and is therefore responsive so that we could move quickly, we could move sensibly, we could make decisions right here, we don't have to wait for decisions that come from afar and have to fit in with another broader program."
The company does not intend to take away or reduce jobs at the diamond mine, located northeast of Yellowknife, he said.
"This is a mine that's been very well constructed by its previous owner. It's got a workforce that's been very well trained and they're very competent and we're looking to build on those blocks," said Gannicott.
The company, which changed its name after the recent sale of its international diamond retail business to Swatch Group in a deal valued at $1 billion, is now focused on Canadian diamond exploration, mining, processing, sorting, and diamond sales.
Gannicott confirmed that the company, which already holds a 40 per cent stake in Ekati's neighbouring Diavik Diamond Mine, is also interested in acquiring Rio Tinto's controlling 60 per cent ownership of Diavik.
"We have an interest in Diavik," he said in response to a question which referenced Rio Tinto's willingness to sell its diamonds business. "I don't think they've completely decided exactly what it is they want to do at the moment but we're certainly there, ready to respond should that be a possibility," Gannicott said.
He stressed that the current focus of the company is Ekati, Canada's first diamond mine, and extending its remaining seven-year mine life with the development and exploration of kimberlite pipe-hosting areas adjacent to the Lac de Gras mine.
"In the context of improved mining techniques and hopefully improved diamond markets, we believe that there may be a much broader future, a much longer future to Ekati than is reflected in this current reserve base," Gannicott said.
Bell stated in an e-mail to Yellowknifer yesterday that he will remain in the part-time chairperson position at power corp. should Michael Miltenberger, the minister in charge of the corporation, wishes him to stay.
"I've advised Minister Miltenberger of my upcoming new role but have also offered to make myself available in a part-time capacity," stated Bell, adding he has worked as a consultant with Dominion under its former Harry Winston banner in the past for several years.
Premier Bob McLeod said the territorial government was supportive from day one when Gannicott indicated interest in acquiring Ekati.
"We were very supportive. We understood that the company would relocate to Yellowknife," McLeod said. "One of the things that we really believe in is if you work in the North you should live in the North and I think Dominion diamond company is certainly willing to work with us in those areas, which I think are very important to the Northwest Territories."
Industry, Tourism and Investment Minister David Ramsay confirmed agreements made between former Ekati owner BHP and the government and communities would remain in place with Dominion.
The company has provided letters of credit to the Government of Canada of approximately $127 million in support of reclamation obligations.
Shares of Yellowknife-based Dominion Diamond Corp. closed at $16.83, down $.07 Thursday on the Toronto Stock Exchange.
