BHP Billiton announced today that it is reviewing its presence in the diamond business, which currently consists of its interests in the EKATI Diamond Mine and the Chidliak exploration project in Canada.
BHP Billiton's strategy is to invest in large, long life, upstream and expandable assets while remaining a simple and scalable organisation. EKATI is a world class operation and Chidliak is a promising exploration opportunity, but many years of extensive exploration suggest there are few options to develop new diamond mines that are consistent with this approach.
This review will, therefore, examine whether a continued presence in the diamonds industry is consistent with BHP Billiton's strategy and evaluate the potential sale of all or part of the diamonds business.
"EKATI has made a substantial contribution to economic growth and development in the North ever since diamonds were first discovered there in 1991,” said BHP Billiton Diamonds & Specialty Products President Tim Cutt. “Its success is a credit to the great team working at the mine and the strong partnerships they have built with Aboriginal communities and local businesses.
"The review we've announced today will seek to maintain this legacy so that EKATI continues to bring social and economic benefits to the North while remaining a great place to work."
BHP Billiton's review of its diamonds portfolio is expected to be completed by the end of January 2012.
The company has promised that it will only pursue options that will preserve EKATI's outstanding safety and environmental standards and protect the benefits that the mine has created for local communities. Potential transactions arising from the review will be subject to detailed analysis before a final decision is made, and in the event that these criteria are not met, BHP Billiton will continue to operate its world class diamonds business in a sustainable manner.
