The company Stornoway Diamonds announced this Friday that it is placing itself under the protection of its creditors, and is “temporarily suspending” operations at its Renard mine located in Nord-du-Québec. Nearly 425 people were laid off.
In a press release, the mining company explains that “the growing uncertainty in the price of diamonds in the short and medium term, coupled with the significant and sudden drop in the price of the resource on the world market” have had “a major impact” on its financial situation.
“This is partly explained by the cessation of imports of rough diamonds into India and by the global geopolitical climate,” underlines the company.
The company, which until this morning had 500 employees, is keeping only 75 to ensure the “upkeep and maintenance” phase, which will “preserve assets and facilitate a rapid return to normal operations”.
Further details will follow.
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