Rio Tinto exploring commercial options for idled Canada diamond project
Global mining major Rio Tinto is exploring commercial options for its Fort à la Corne (Falcon) joint venture (JV) project, in Saskatchewan, partner Star Diamond said on Friday.
Citing a Rio Tinto Canada memo, Star Diamond said that the project continued to be on care and maintenance and that the major was “actively looking” to minimise costs.
Rio Tinto Canada also stated that it intended to fully de-mobilise the leased on-site camp in early 2023.
Rio Tinto Canada exercised its voting power in June this year to place the project on care and maintenance through December 31, 2022. At that time, Rio Tinto Canada also advised that, subject to fulfilling its existing obligations, it did not intend to commit additional capital to the project during 2022 beyond what is necessary for care and maintenance.
At the time, the diversified major also advised that it was conducting a review of its alternatives regarding the project, including its potential exit.
Star Diamond said that it was working with Rio Tinto Canada in assessing alternatives regarding the project.
“These discussions remain at an early stage and there is no certainty that any agreement will be reached between Star Diamond and Rio Tinto Canada regarding any such potential arrangements.”
Star Diamond and Rio Tinto Canada at the end of last year made peace over the Falcon JV following a protracted period of disagreement.
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