Canada-based mining company Dominion Diamonds is likely to acquire the stake in Diavik diamond mine from global miner Rio Tinto.

According to Reuters, Rio Tinto is planning to exit diamond industry by divesting its assets including majority-owned Diavik mine. Dominion holds 40% ownership in the project.

Dominion CEO Robert Gannicott stated that the company has headroom to strike a deal with Rio on Diavik mine, if the mine is valued at the ideal price.

The announcement follows company’s plans to expand its diamond portfolio in the country.

Earlier in April 2013, Dominion has acquired Ekati diamond-mining operations in Canada’s Northwest Territories from BHP Billiton in a $500m deal.

The company sold its luxury jewelry business, Harry Winston to Swatch in January 2013 stating that it would focus on its mining business and renamed the company as Dominion Diamonds.