Canada's Dominion Diamond says fire contained at Ekati plant

Thu Jun 23, 2016 2:15pm EDT
 
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TORONTO (Reuters) - Dominion Diamond Corp said on Thursday that it has contained a fire that broke out at its Ekati diamond mine processing plant in Canada's Northwest Territories, and that the workers have been evacuated.

No injuries have been reported, the Toronto-based company said in a statement, adding that it would announce more information as it became available. The fire broke out during a planned outage at the process plant, said Dominion.

The mine, which has open pit and underground operations, recovered 1.1 million carats from 1 million tonnes of processed ore in the first quarter.

"The main concern now will be how much damage has been done and what the impact to production might be," BMO Capital Markets analyst Edward Sterck said in a note.

As production ramps up on Dominion's Misery diamond pipe, any processing delays are likely to hurt the "attractive" cash flows projected for that pipe, he added.

(Reporting by Susan Taylor; Editing by G Crosse and Matthew Lewis)