BHP Announces Approval of Ekati Koala Underground Project

BHP Billiton today announced the approval of the Koala Underground Project at the Ekati Diamond Mine in Canada. The project will recover approximately 9.8 million carats of high value Koala diamonds over an 11 year production life at a capital cost of approximately $250 million (BHP Billiton share $200 million). Initial production is expected in the December 2007 quarter and full production is expected to be reached by mid calendar year 2009.

President Diamonds and Specialty Products, Alberto Calderon said, “Koala underground will supply around 25 percent of the mine feed (3,300 tons per day) to the plant while producing 40 percent of the diamond output by value. As well as delivering margins three times greater than the material it displaces, this development will also partially offset the natural decline in production grades and quality that occurs as the mine matures.

"The development of the Koala underground project follows the successful completion of the Panda underground mine at Ekati, earlier this year. Panda was completed on time and on budget, and is currently producing in excess of nameplate capacity.”

BHP Billiton has an 80 percent interest in the Ekati Diamond Mine.