(Bloomberg) -- Rio Tinto Group has taken full control of Canada's biggest diamond mine after agreeing to buy the stake previously owned by billionaire Dennis Washington.
Rio, which already owned 60% of the Diavik mine, said Thursday it had bought the share previously held by Dominion Diamond Mines. Dominion filed for insolvency protection in early 2020 as the pandemic brought the global diamond trade to a halt.
Diavik is Rio's last operating diamond asset after the closure of its giant Argyle mine in Australia. While the company has repeatedly said it likes the diamond business, it's struggled to find replacements for its aging portfolio. Diavik, operated by Rio since production started in 2003, is set to close in four years.
Washington bought Dominion for $1.2 billion in 2017, but faced challenges with low diamond prices and an exodus of senior managers.
Rio said that under the terms of the deal, it had released Dominion and its lenders from all outstanding liabilities and obligations to fund the operations or closure of the joint venture.
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