Rio Tinto names Shell’s Katie Jackson as new copper chief
Jackson, who is the current president of National Grid Ventures, an energy group, joins Rio Tinto on September 1.
BHP Billiton (NYSE:BHP) said today it is reviewing its diamond business, which includes two large diamond mines in northern Canada, for a potential sale of all or parts of the business.
The world’s largest mining company said the review, expected to be completed by the end of January, will “examine whether a continued presence in the diamonds industry is consistent with BHP Billiton’s strategy.”
BHP owns 80% of the Ekati diamond mine in Canada’s Northwest Territories. The other 20% is owned by geologists Chuck Fipke and Stewart Blusson (each has a 10% stake), who discovered the kimberlite pipes north of Lac de Gras in 1991.
BHP also owns 51% of the Chidliak diamond exploration property on Baffin Island, with the other 49% owned by Peregrine Diamonds (TSE:PGD), which has been exploring the 860,000-hectare property since 2006. Chidliak also contains copper, platinum group metals and lead-zinc.
“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,” BHP said in a statement.
The company noted the review may not necessarily lead to a sale. “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.”
The news comes a few weeks after Anglo American (LON:AAL) increased its interest in De Beers from 45% to 85% by buying out the Oppenheimer family for US$5.1 billion, in a major shakeup of the South African diamond dynasty, MINING.com reported.
6 Comments
Dan Oancea
BHP’s saying that new diamond mines are hard to find (really don’t think that we should call it quits with so much left to explore in northern Russia, Canada, etc). That should make the existing operations more valuable because diamonds are not forever, they’re a finite resource – call it peak diamond theory, if you want. Not to mention that bigger stones (> 10 carats) are increasingly rare.
This would make way for the emancipation of synthetic diamonds.
Dr R. D. Long
BHP only produces about 2% of the world’s diamonds compared to Rio Tinto (6%) and Anglo American/ DeBeers (27%). With only four major discoveries in the past 4 years it is unlikely that BHP will ever be able to compete with the other major diamond miners. The supply and demand fundamentals of diamond industry are indeed exciting but for a company like BHP, which focuses on large bulk commodities, diamonds don’t make sense. Diamond prices will rise but with limited room for BHP Billiton to expand its presence it is logical for the company to concentrate its efforts on other bulk commodities with more potential for expansion through exploration. EKATI is a world class mine though BHP has taken the best of the deposit and the mines future will be increasingly underground at high cost. I am sure it will make an attractive target for someone like Lucara, Gem or perhaps even Alrosa.
MINING.com Editors
Great comment Dr. R.D. Long. Thanks for visiting. As you probably know BHP is investing heavily right now in natural gas.
black diamond jewelry
Really black diamond business information provides good. I know more diamond news got form your site!
stanventures
This post information is import thing of the wedding bands buying peoples
wedding ring
This post really good information for the buying wedding bands and ring peoples