Winsome Resources is set to acquire the Renard diamond mine in Quebec, marking an important move from diamond mining to lithium extraction. This development follows the bankruptcy filing of Stornoway, the previous owner of Renard, which had been the sole operator of the mine. The acquisition signifies a notable shift in resource extraction focus, with implications for both the local economy and the broader lithium and diamond markets.
“Winsome’s intention is not to continue mining diamonds at Renard, which was already deemed uneconomic by Stornoway,” a spokesperson shared in a media publication.
“Rather, it plans to repurpose the site and existing processing infrastructure to assist permitting, development, and ultimately processing of lithium from Winsome’s nearby Adina Lithium Project. This will minimize environmental impacts and provide a significant capital investment head start for [Winsome], given the value of infrastructure and equipment at Renard, should the acquisition go ahead.”
Acquisition Details
Winsome Resources has entered into a binding agreement to purchase the Renard mine, an arrangement that includes an option to either take over the mine’s processing facility and associated infrastructure or acquire all issued capital in Stornoway. The deal is dependent upon approval from the Superior Court of Quebec. Winsome has committed to a total payment of CAD 52 million ($38.5 million) to Stornoway, with the option of payment in cash, shares, or a combination thereof. The agreement specified that Winsome will not inherit any of Stornoway’s financial obligations, except for mine rehabilitation responsibilities.
Future Prospects and Repurposing Efforts
The decision to repurpose the Renard mine underscores Winsome’s strategic move towards strengthening its lithium portfolio, particularly in light of its Adina Lithium Project and other lithium deposits in the region. During an option period, Winsome will conduct a comprehensive assessment covering the technical, economic, environmental, and social feasibility of this transition. This move is reflective of the company’s broader objective to explore lithium opportunities, amidst growing demand for the metal, primarily driven by the electric vehicle (EV) and renewable energy sectors.
Impact on the Local Economy and the Industry
The Renard mine, operational from 2017 until its closure in the fourth quarter of 2023, was a significant employer in the region, providing jobs to over 500 people and producing an average of 1.8 million carats of diamonds annually. The shift in operational focus from diamond to lithium extraction poses questions about the future economic landscape and employment opportunities in the area. For the wider jewellery and lithium industries, this transition marks a noteworthy development, reflecting the fluctuating dynamics of global markets and resource demand.
