Ekati Diamond Production Shrinking

BHP Billiton revealed a significant and growing drop in the volume of diamond production at its Ekati diamond mine in Canada. During the last nine months diamond production fell 26 percent, 36 percent during the third quarter ended March 31.

The multi-miner today released its production report for the third quarter. Its 80 percent share of the Ekati mine yielded 1.978 million carats during the first three quarters of the fiscal year and 512,000 carats during the third quarter.

Compared to second quarter figures, BHP's third quarter production share fell 17 percent from 614,000 carats.

“March 2006 quarterly production was lower than the December 2005 quarter due to the impact of planned changes to the mix of ore sources being processed,” BHP Billiton said in this morning's release.

The company’s gold mining operations fared better, totaling 32,152 ounces during the third quarter, a 72 percent increase. Since the start of the year 54,700 ounces were mined, an increase of 62 percent.