The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
BLT: LON
Chief Executive Officer: Marius Kloppers
Chief Financial Officer: Alex Vanselow
London-based BHP Billiton, one of the world's largest diversified resources companies, owns nearly 80 percent of the Ekati diamond mine, Canada's first surface and underground diamond mine that officially began production in 1998. Located about 310 kilometers, or about 192 miles, northeast of Yellowknife, Ekati has about 156 kimberlite pipes with both open pit and underground mining operations. The Panda and Koala pits are underground mines with open-cut mining occurring in the Fox and Beartooth pits. Ekati produces an average of 3.5 million carats of rough diamonds annually, which represent about 3 percent of current world rough diamond supply by weight and 6 percent by value.
BHP has invested in several exploration ventures north of the 60th parallel in recent years, including the Chidliak Project on Baffin Island in Nunavut.
The major committed at least C$22 million to exploration expenditures at Chidliak to acquire a 51 percent stake in the venture.
For the 12 months that ended June 30, BHP reported US$485 million in operating earnings (underlying EBIT) from its diamonds segment, an increase of US$340 million, or 234 percent, over comparable results a year ago.
Strong operating earnings at the Ekati mine resulted from higher volumes and realized diamond prices and lower unit costs, due to continued emphasis on cost control.
The major said its performance also reflected a decrease in exploration expense of US$43 million mainly due to reduced diamonds exploration activity.
BHP Billiton approved a C$15.3 million 2010 exploration program for Chidliak, which followed up on 2009 discoveries on the property by operator Peregrine Diamonds Ltd. The work led to the discovery of at least 16 new kimberlites, bringing to at least 32 the number of kimberlites discovered so far on the 9,800-square-kilometer, or 3,784-square-mile, property. Exploration is ongoing.
Cash and short-term deposits:
US$12.5 billion
Market capitalization: US$106.585 billion
#1102, 4920-52nd St. Yellowknife, NT X1A 3T1
Phone: 867-669-6100 Fax: 867-669-9293
Reader Comments(0)