Ekati Diamond Production Drops 39%

Diamond production declined 6 percent compared to the preceding September quarter and fell 39 percent year-over-year.

In the first half of BHP's reporting year, diamond production totaled 608,000 carats, falling 35 percent year-over-year.

In November BHP announced an agreement to sell its diamonds business, comprising its 80 percent interests in the Ekati diamond mine and the diamonds marketing operations, to Harry Winston Diamond Mines for $500 million a cash transaction.

While awaiting regulatory approval, minority stakeholder Charles Fipke started legal proceedings to halt the agreement. He claims that offers made by BHP to him to purchase the mine did not comply with his rights of first refusal under the joint venture agreements.

BHP said on Wednesday that it to complete the transaction in the first half of 2013.