The departure of two officers of the Company

Départ de deux dirigeants de Stornoway

Photo: Getty Images/iStockphoto
The company has suspended production at the mine on march 24, when the government of Quebec announced the suspension of all activity not being considered essential.

Changing of the guard was important to the direction of Stornoway Diamonds : the producer, the mine north of Chibougamau, has still not resumed operations since his arrest in march, on Thursday announced the departure of the president, Patrick Godin, and the executive vice-president finance and corporate services, Annie Torkia Lagacé.

According to the company, these departures are a “further step in the rationalization of the management team,” which is set to launch in 2019, when the company has sought in vain for a buyer before sliding under the control of four secured creditors, or Investissement Québec (IQ), Royalties Gold Osisko, the Caisse de dépôt et placement du Québec, and a Triple Flag Mining.

The company will now be headed by a chief of operations Patrick Sévigny, who has been working at the Company since 2015 and held until now the position of vice-president, operations.

“The board of directors, in collaboration with the shareholders of the company, continues to work actively in the rationalization of the company and to a possible restart of the activities of the Renard in parallel to the recovery of the diamond market,” said the Company in a press release.

The collapse of the markets slowed us down in our tracks, and this, to my great disappointment

— Patrick Godin

Weakness of the market

The company has suspended production at the mine on march 24, when the government of Quebec announced the suspension of all activity not being considered essential. A few weeks later, the Company has extended this stop, even if the mining industry learned that she would be allowed to restart. The price of diamonds continued to be too low, as a result of a request depressed, but border restrictions made it difficult to also the visits of buyers to Antwerp, in Belgium, the crossroads of the viewing and auction. To maintain the condition of facilities, fifty employees is in position, the company said in the month of April. The shutdown has affected the 540 workers.

Mr. Godin, who will provide support to enable a transition in the next few months, arrived in Stornoway in 2010, before the construction of the mine, which would later become the symbol of the Plan Nord of the Charest government.

“The collapse of the markets slowed us down in our tracks, and this, to my great disappointment “, he said. “I fully believe in the capabilities of Patrick Sévigny to run the company, and I am convinced that the future of the mine and of the organization will improve in time when the diamond market recovers. “

Reorganization

Royalties Gold Osisko holds 35.1% of the Company, according to the text of a decision of the superior Court of Québec rendered in October 2019. The court supervising the reorganization of the company. IQ has a block of 35 %, followed by the Caisse de dépôt et placement 16.9 % and Triple Flag at 13 %.

Inaugurated in 2014, the mine is located 350 kilometres north of Chibougamau. According to data from the summer of 2019, the Crees of Eeyou Istchee accounted for a little over 11 % of its workforce and the majority of the 75 sub-contractors.

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