Coronavirus Ban Lifted, but Renard Mine Stays Closed

(IDEX Online) - Canada's Renard diamond mine is to remain closed, even though a coronavirus ban on its operations was lifted yesterday.

Owners Stornoway Diamond say it will remain on care and maintenance because the rough market is so depressed.

The company said 540 workers would be affected and 50 would remain on site at in the James Bay region of north-central Quebec.

Work was suspended at the mine on 24 March when the provincial government deemed it a non-essential service.

Stornoway blamed the collapse in diamond prices on buyers being hit by global travel bans, social distancing and flat retail demand.

Patrick Godin, president and CEO, said: "The unprecedented global events we are experiencing have unfortunately led to the board of directors to take this difficult decision impacting our employees and a number of our valued stakeholders."

Stornoway was acquired by Osisko Gold Royalties and other secured creditors last September after it ran out of working capital.