Further Decline in BHP's Diamond Production

(IDEX Online News) – BHP Billiton, on the eve of offloading its diamond activities, reported a 21 percent year-over-year decline in diamond production. The company's Ekati mine was source of 433,000 carats in the March ending quarter.

The decline in production was anticipated, in line with a plan to extract lower grade material in the medium term, the company said in a quarterly production review.

In the first three quarters of BHP's fiscal year, it mined 1.37 million carats, a 29 percent year-over-year decline.

BHP Billiton announced a review of its diamonds business during the December 2011 quarter and this process is ongoing. Currently three bidders are interested in buying BHP's diamond operations, private investment firm KKR, and diamond miners Harry Winston and Stornoway.