May 4 2004
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.
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