DGI in New Attempt to Buy BHP Billiton’s Ekati Mine
March 24, 04
Israel’s DGI Group of Companies said today (Wednesday) it has formed a consortium with around $2 billion at its disposal for the purpose of buying diamond mines and related interests around the world, particularly BHP Billiton’s Ekati mine in Canada’s Northwest Territories.
DGI, headed by Dan Gertler, expressed an interest in buying the Ekati mine last June but BHP Billiton said at the time it was not seeking a purchaser.
DGI has reiterated its interest in buying the mine due to “rumors that there is support for a sale of Ekati within senior management at BHP Billiton”, DGI said in a news release.
DGI is reasonably confident a deal will be reached, spokesman Lior Chorev told IDEX Online.
“The chances to close the deal are 50/50 at this stage.
In response to the news a De Beers spokesperson says "as far as De Beers is concerned this is pure speculation".
The Ekati mine, which started production in 1998, produces almost 4 percent of world diamond production by weight and six percent by value.