The Ekati diamond mine has liabilities of more than half a billion dollars, has shed hundreds of jobs and no longer has any cash to pay remaining workers.
That’s the position taken by bosses at Burgundy, the mine’s owner, in court filings this week that declare the mine to be insolvent.
Burgundy is preparing to try to sell the mine in the weeks ahead.
The documents set out:
- glaring environmental concerns, with Burgundy appearing to be at least $100 million short on security deposits to cover the mine’s remediation;
- more than $60 million is still owed to contractors, despite Burgundy negotiating debt forgiveness from firms that is worth $18…