BHP Billiton Diamond Production Continues Decline

Diamond production by BHP Billiton, the world’s largest mining company and 80 percent owner of the Canadian Ekati mine, continued to decline in the past quarter. The company cites lower grade ore at the diamond mine as the reason for the fall. Annual production fell 29 percent to 2,561,000 carats while quarterly production dropped 39 percent to 583,000 carats.

While carat production decreased in the year and quarter ended June 2006, on a year over year basis, quarterly production increased 14 percent increase compared to the preceding quarter ending March 31. BHP explains the rise as a result of increased throughput partially offset by marginally lower grade.

The miner processed 1,181,000 tons of ore during the quarter and 4,296,000 tons during the year, yielding 0.494 CPT (carats per ton) on a quarterly basis and 0.596 CPT annually, underlying the continued decline in ore grade.