Ekati Q3 Production Up 53%

Diamond production at BHP Billiton’s Ekati diamond mine in Canada reached approximately 1.189 million carats in the March ending quarter, a 53 percent year-over-year increase. The rise is due to an increase in processed ore and higher grade, the company said Wednesday.

According to a quarterly production report, BHP Billiton processed 1.25 million tones of ore in the third quarter, compared to 967,000 in the March 2008 quarter.

Why the miner decided to increase production in a period of very weak diamond sales is not clear. The only explanation the miner provided is that it changed ore sources.

Because of the increased production, and the continued drop in rough diamond sales, the company is likely storing large quantities of rough diamonds these days.

Ekati is in the process of transitioning from open pit mining to underground mining, and the mix of processed ore will change from time to time, the company added.

Year to date, production declined. Production in the nine month period decreased 7 percent from 2.485 million carats to 2.318 million carats, this due to lower grade.