Dominion takes on Rio subsidiary over alleged contract breach
Struggling Canadian miner Dominion Diamond Mines has filed a lawsuit in the Supreme Court of British Columbia, suing global miner Rio Tinto’s subsidiary Diavik Diamond Mines Incorporated (DDMI).
The legal action relates to an alleged breach of contract and an alleged breach of fiduciary duty under the companies’ joint venture (JV) agreement.
Dominion has a 40% interest in the Diavik mine, while Rio Tinto's DDMI holds a 60% interest in the mine, which is located on the 20-km-wide island in Lac de Gras, north-east of Yellowknife, in the Northwest Territories.