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Rio Tinto subsidiary slapped with civil suit

Diavik Diamond Mines, a wholly-owned subsidiary of Rio Tinto, is being sued by Dominion Diamond Mines, its 40 per cent partner in the NWT’s Diavik diamond mine.
Diavik Diamond Mines, a wholly-owned subsidiary of Rio Tinto, is being sued by Dominion Diamond Mines, its 40 per cent partner in the NWT’s Diavik diamond mine.
Photo ©Rio Tinto

A civil lawsuit citing breach of contract and other claims has been filed against Rio Tinto’s Diavik Diamond Mines (DDMI).

The company has been accused by Dominion Diamond Mines, its 40 per cent partner in the Diavik diamond mine, of managing the Northwest Territories site to the benefit Rio Tinto and the detriment of Dominion, CBC News reports.

The papers, filed with the Supreme Court of British Columbia, claims Diavik “has failed to meet production targets while running significantly over budget, and without regard for the negative economic climate created by the global COVID-19 pandemic,” Jeweller reports.

Further, the lawsuit claims DDMI, which is a wholly-owned subsidiary of Rio Tinto, continued to make ‘cash calls’ from Dominion “knowing that Dominion has no ability to pay for such cash calls,” CBC News says.

The company is seeking damages, costs, and a ruling the joint venture agreement has been broken. No cash value was given in the filing and DDMI has not yet responded to the civil claim.

Rio Tinto claims Dominion’s allegations are ‘baseless,’ CBC News reports.

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