BHP Billiton's Diamond Production Drops 29%
July 18, 12
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BHP said in an annual operations review that the lower production level was expected, forecasting Ekati's production to remain "constrained" in the medium term because of the extraction of lower grade material. BHP said this is consistent with the mine plan.
In the fourth quarter ended June 30, BHP's production fell 28 percent year-over-year.
Yesterday Rio Tinto reported that its diamond production in the first half of 2012 increased 24 percent to 6.2 million carats. The increase was mainly attributed to low production the year before, the result of heavy rains and flooding.
Both companies announced a review of their diamonds business, with the intention of diversifying from diamonds.
BHP, which announced the review during the December 2011 quarter, said the process is ongoing.
The sale of BHP’s 37 percent interest in Richards Bay Minerals in