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BHP BILLITON PLC - NEWS RELEASE: BHP BILLITON APPROVES PANDA UNDERGROUND PROJECT
BHP Billiton Plc
JSE Share Code: BIL
ISIN Code: GB0000566504
BHP BILLITON APPROVES PANDA UNDERGROUND PROJECT
BHP Billiton today announced the approval of the US$182 million (US$146 BHP
Billiton share) Panda Underground Project at the EKATI Diamond Mine in Canada.
The project will deliver approximately 4.7 million carats of high value Panda
diamonds over a six-year production life. Initial production is expected in
early 2005 and full production in early 2006.
The open pit portion of the Panda mine was the original EKATI orebody. It was
mined from October 1998 until its economic pit depth was reached in June of
2003. Development of the underground orebody was contemplated in the original
Environmental Assessment and mine plan. Subsequent engineering work and test
mining has determined that underground recovery of the lower portions of the
Panda orebody is technically feasible and economically attractive.
President Diamonds and Specialty Products, Marcus Randolph said: The production
grades and diamond quality at EKATI are declining as the mine ages. The
development will partially arrest this decline during its six-year life by
supplying about 20% of the mine feed (2,600 tonnes per day) to the plant while
producing about 40% of the diamond output by value. The underground material
will deliver margins three times greater than the material it displaces.
The Panda underground development was preceded by the Koala North test
underground mine, which was used to establish what types of equipment, materials
and processes worked best in Arctic permafrost underground conditions. The
Koala North development allowed the EKATI underground operating group to
establish work and safety processes and a business relationship with a
qualified, Arctic-experienced mining contractor. The Koala North underground
mine was the first underground diamond mine in Canada.
Forward-Looking Statements
This release contains forward-looking statements about BHP Billitons
development and capital expenditure plans and future production. Words such as
will, is expected to, is estimated to and similar expressions are intended
to identify such forward-looking statements. The statements are based on
managements current expectations, estimates and projections; are not guarantees
of future performance; and are subject to certain risks, uncertainties and other
factors, some of which are beyond BHP Billitons control and are difficult to
predict. Certain factors that could cause actual results to differ materially
are discussed in the sections entitled Risk Factors and Operating and
Financial Review and Prospects - General factors affecting our operating
results included in our annual report on Form 20-F for the fiscal year ended
June 30, 2003, which we filed with the US Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. Unless legally required, BHP Billiton
undertakes no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.
The information in this report that relates to Ore Reserves is based on compiled
data which was overseen by Paul Harvey, B. Eng (Mining), MAusIMM, who is a
Member of the Australian Institute of Mining and Metallurgy and is a full time
employee of BHP Billiton Diamonds Inc. Mr. Harvey has sufficient experience,
which is relevant to the style and type of deposit and to the activity that he
is undertaking to qualify as a Competent Person as defined in the 1999 edition
of the Australasian Code for Reporting of Minerals Resources and Ore Reserves.
The Competent Person consents to the inclusion in this report of the matters
based on their information in the form and context in which they appear.
Date:
4 May 2004
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia: United Kingdom:
Tracey Whitehead, Mark Lidiard,
Investor Relations Investor & Media Relations
Tel: +61 3 9609 4202 Tel: +44 20 7802 4156
Mobile: +61 419 404 978 email:
email: Mark.Lidiard@bhpbilliton.com
Tracey.Whitehead@bhpbilliton.com
Tania Price, Ariane Gentil,
Media Relations Media Relations
Tel: +61 3 9609 3815 Tel: +44 20 7802 4177
Mobile: +61 419 152 780 email:
email: Tania.Price@bhpbilliton.com Ariane.Gentil@bhpbilliton.com
United States: South Africa:
Francis McAllister, Michael Campbell,
Investor Relations Investor & Media Relations
Tel: +1 713 961 8625 Tel: +27 11 376 3360
Mobile: +1 713 480 3699 Mobile: +27 82 458 2587
email: email:
Francis.R.McAllister@bhpbilliton.com Michael.J.Campbell@bhpbilliton.com
Date: 04/05/2004 09:38:04 AM Produced by the JSE SENS Department
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