DIAMOND MINING: BHP Billiton reviews its involvement

BHP Billiton has announced plans to review its involvement in the diamond mining business. The company has an 80% interest in the Ekati mine (Canada's first diamond producer) at Lac de Gras, NWT, and a 51% interest in the Chidliak exploration project on Baffin Island.

Most observers believe BHP Billiton wants to divest its diamond interests because they are such small assets. Until that happens, the company has promised to continue operate its diamond business in a sustainable manner.

Tim Cutt, diamonds and speciality products president, said, "Ekati has mad a substandial 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 wit hAboriginal communities and local businesses.

"The review we've announced will seek to maintain this legacy to that Ekati continues to bring social and economic benefits to the North while remaining a great place to work."

The operator and 49% owner of the Chidliak project is Peregrene Diamonds of Vancouver.

The BHP Billiton website is at www.BHPBilliton.com.