BHP Billiton’s Diamond Production Falls in Past Year

(IDEX Online News) – BHP Billiton’s diamond production suffered a double-digit drop in the fiscal year, the miner reported on Wednesday. The company mined 2,506,000 carats, an 18% year-over-year drop.

Diamond production was lower in the year and quarter ended June 2011 primarily due to lower average ore grades, BHP Billiton said in a production report. Total ore processing declined from 4.9 million tonnes in fiscal 2010 to 4.7 million tonnes in 2011.

Production in the fourth quarter totaled 576,000 carats a 22% year-over-year decline but a 5% increase compared to the preceding March 2011 quarter.

The multi-commodity miner expects lower average ore grades to keep impacting Ekati’s production in the 2012 financial year.

BHP’s shrinking production comes at a time when demand for rough remains steady, signaling a possible increase in rough prices.