BHP starts production ahead of schedule at Koala underground

BHP Billiton’s third underground diamond mine, the Koala Underground Project at Ekati in northern Canada, has been constructed safely, ahead of schedule and under budget.

First kimberlite production followed the inaugural blast which was successfully achieved on 4 October 2007, five weeks ahead of schedule and the main conveyor was commissioned on 9 December 2007, four months ahead of schedule. This marks the official start of underground ore production from Koala, with production ramp up to full production of 3,300 tonnes per day expected by mid calendar year 2009.

Recently the Koala Underground Project received a High Commendation Award from BHP Billiton’s 2007 Project Safety Excellence Awards Program. BHP Billiton recognized the significant effort that has gone into improving the safety systems and processes on the Koala Underground Project and the excellent safety base to ensure future success and Zero Harm.

The Koala Underground Project, approved in June 2006, is expected to deliver approximately 9.8 million carats of high value Koala diamonds over an 11 year production life. The project’s capital cost is approximately US$220 million (BHP Billiton share US$176 million).

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