BHP Diamond Revenue Drops in H1

(IDEX Online News) – BHP Billiton reported a 16.4 percent decline in revenue from diamonds in the first half of the fiscal year, a result of lower production.

Diamond revenue declined from $427 million to $357 million in the six months ending December 31, 2011.

BHP Billiton said production at the Ekati diamond mine in Canada is expected to remain constrained in the medium term as the operations extract lower grade material, consistent with the mine plan.

Diamond EBITDA for the half-year period declined to $193 million despite stronger diamond prices.

The company is continuing its review of its diamonds business, including the possible sell of its 80 percent interest in Ekati. "The process is ongoing and could continue through the first half of the 2012 calendar year."

The BHP Billiton Group reported $37.48 billion in revenue