Ekati Misery Project

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EKATI DIAMOND MINE

BHP Billiton, which owns an 80% stake in the Ekati diamond mine, said its diamond production for the fiscal year that ended June 30 was down 29% to 1.784 million carats which was in line with company expectations. Ekati's diamond output slipped 28% to 413,000 carats in the fourth quarter on a year-on-year basis, but was only 5% lower than the preceding third quarter.

"Production was lower than all comparable periods, as expected. Ekati production is forecast to remain constrained in the medium term as the operations extract lower grade material, consistent with the mine plan," the company said in its annual production report.

BHP Billiton announced a review of its diamond business during the December 2011 quarter and noted that this process is ongoing. The firm noted that the Ekati Misery Project, which consists of a pushback of the existing open pit that was mined from 2001 to 2005, is on schedule and budget with 26% complete.


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