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Mountain Province Diamonds transfers 49% Gahcho Kué stake to De Beers
De Beers will assume Mountain Province’s share of decommissioning, reclamation, environmental clean-up costs, and other debts tied to the mine.
Mountain Province Diamonds will transfer its 49% stake in the Gahcho Kué diamond mine in Canada’s Northwest Territories to partner De Beers as part of a broad restructuring aimed at stabilizing its finances, Mining.com reported.
Under the agreement announced Thursday, De Beers will take Mountain Province’s interest in exchange for assuming the company’s share of decommissioning, reclamation and environmental clean-up costs, along with other debts Mountain Province owes De Beers.
Mountain Province said the deal removes liabilities and is intended to provide greater certainty for employees and communities connected to Gahcho Kué, while preserving rights that would allow it to participate again in the mine’s future.
Mining.com added that the restructuring reflects financial strain across the diamond sector, as weak prices, sluggish demand and competition from lab-grown stones are pushing producers to cut costs and reconsider operations.