Renard Mine Stays Closed (for now)

Mining and Exploration
15/04/2020 07:37

Stornoway Diamonds has decided not to resume activity at its Renard operation despite a provincial classification of mining as "essential operation". "The unprecedented global events we are experiencing have unfortunately led to the board of directors to take this difficult decision impacting our employees and a number of our valued stakeholders.", Stornoway CEO and President Patrick Godin commented. Other mining operations in Quebec are expected to reopen today, but according to Stornoway management, restrictions to properly market goods as well as the current decreased prices for rough diamonds are forcing the company to keep the mine on care and maintenance longer. 

Rough market analyst Paul Zimnisky believes "revenge shopping" and reduced supply of rough, as some of the world's major mines are reducing capacity or being put in care and maintenance might help the industry to recover. Zimnisky also believes "mines nearing the end of their mine life would have to take a very close look at whether it would be worth reopening."