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BIL
BIBLT
BIL - BHP Billiton - Review of Diamonds Business
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release Time IMMEDIATE
Date 29 November 2011
Number 36/11
REVIEW OF DIAMONDS BUSINESS
BHP Billiton announced today that it is reviewing its diamonds business,
comprising the Group`s 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.
As it reviews its diamonds business, BHP Billiton will only pursue those
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. In the event that these
criteria are not met, BHP Billiton will continue to operate its world class
diamonds business in a sustainable manner.
BHP Billiton Diamonds & Specialty Products President Tim Cutt said: "EKATI has
made a substantial contribution to economic growth and development in the
North ever since diamonds were first discovered there in 1991. 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.
About EKATI:
EKATI is located 310 kilometres northeast of Yellowknife and 200 kilometres
south of the Arctic Circle. It is Canada`s first diamond mine and owned by BHP
Billiton (80%), Dr Stewart Blusson (10%) and Charles Fipke (10%).
EKATI has produced an average of over three million carats of rough diamonds
per year over the last three years with annual sales representing
approximately 10% per cent of global diamond supply by value.
EKATI has an outstanding safety and environmental record and a strong history
of working with communities in the North. Since operations began in 1998, its
total expenditure on goods and services has exceeded $4.2 billion, of which
almost 80% has been spent in the North with Aboriginal and Northern
businesses.
About Chidliak:
Chidliak is a diamonds exploration project located on South East Baffin Island
in Nunavut, Canada. The property consists of 860,000 hectares about 140km from
Iqaluit. Chidliak is a joint venture partnership between BHP Billiton (51%)
and Peregrine Diamonds Ltd (49%) and has been operated by Peregrine since
2006.
Exploration is ongoing and 7 of 59 known kimberlites have shown economic
potential, with others continuing to be explored and assessed. In addition to
its diamond potential, the Chidliak property hosts mineral anomalies
indicative of platinum / palladium, lead-zinc and copper deposits.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
Sponsor: Absa Capital (the investment banking division of Absa Bank Limited,
affiliated with Barclays Capital)
Media Relations Investor Relations
Australia Australia
Samantha Stevens James Agar
Tel: +61 3 9609 2898 Tel: +61 3 9609 2222
Mobile: +61 400 693 915 Mobile: +61 467 807 064
email: Samantha.Stevens@bhpbilliton.com email: James.Agar@bhpbilliton.com
Kelly Quirke Andrew Gunn
Tel: +61 3 9609 2896 Tel: +61 3 9609 3575
Mobile: +61 429 966 312 Mobile: +61 439 558 454
email: Kelly.Quirke@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
Fiona Martin United Kingdom and South Africa
Tel: +61 3 9609 2211
Mobile: +61 427 777 908 Brendan Harris
email: Fiona.Martin2@bhpbilliton.com Tel: +44 20 7802 4131
United Kingdom and Americas Mobile: +44 7990 527 726
email:
Ruban Yogarajah Brendan.Harris@bhpbilliton.com
Tel: US +1 713 966 2907 or
UK +44 20 7802 4033 Tara Dines
Mobile: UK +44 7827 082 022 Tel : +44 20 7802 7113
email: Ruban.Yogarajah@bhpbilliton.com Mobile : +44 7825 342 232
Email : Tara.Dines@bhpbilliton.com
Americas
Scott Espenshade
Tel: +1 713 599 6431
Mobile: +1 713 208 8565
email:
Scott.Espenshade@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration
Registered in Australia number 3196209
Registered Office: 180 Lonsdale Street Registered in England and Wales
Melbourne Victoria 3000 Australia Registered Office: Neathouse Place
Tel +61 1300 55 4757 London SW1V 1BH United Kingdom
Fax +61 3 9609 3015 Tel +44 20 7802 4000
Fax +44 20 7802 4111
Members of the BHP Billiton Group which is headquartered in Australia
Date: 29/11/2011 16:00:20 Produced by the JSE SENS Department.
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