Israel’s Leviev Chosen to Buy Yellowknife Sirius Factory

Canada’s N.W.T. government says Israeli diamond tycoon Lev Leviev has been selected to buy the Sirius diamond polishing plant in Yellowknife, which went bankrupt after the local administration called in CA$8 million ($6.1 million) in government-guaranteed loans.

Leviev is a major player in the global diamond industry, carrying out more than $2 billion worth of business annually, including polishing operations in Israel, Russia and Namibia.

N.W.T. government Finance Minister Floyd Roland says Leviev has agreed to pay more than the threshold payment of C$6.5 million ($5 million) for the plant, but declined to say exactly how much Leviev’s firm is paying for it.

“It met our requirements fiscally, number one,” Floyd said. “It is a larger company that has a lot of experience in the diamond industry and we felt there would be an opportunity to broaden the horizons of the N.W.T. when it comes to the diamond industry.”

Roland said Leviev’s proposed takeover of the firm required court approval and he expected that to be completed by the end of next month.

Roland added that the government examined five bids for the acquisition of the plant, which is currently being administered by a court-appointed receiver.