App Panda Underground Project
BHP Billiton Limited
04 May 2004
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
Date: 4 May 2004
Number: 22/04
BHP BILLITON APPROVES PANDA UNDERGROUND PROJECT
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.
Forward-looking statements
This release contains forward-looking statements about BHP Billiton's
development and capital expenditure plans and future production. Words such as
'will,' 'is expected to,' 'is estimated to' and similar expressions are intended
to identify such forward-looking statements. The statements are based on
management's current expectations, estimates and projections; are not guarantees
of future performance; and are subject to certain risks, uncertainties and other
factors, some of which are beyond BHP Billiton's control and are difficult to
predict. Certain factors that could cause actual results to differ materially
are discussed in the sections entitled 'Risk Factors' and 'Operating and
Financial Review and Prospects - General factors affecting our operating
results' included in our annual report on Form 20-F for the fiscal year ended
June 30, 2003, which we filed with the US Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. Unless legally required, BHP Billiton
undertakes no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.
The information in this report that relates to Ore Reserves is based on compiled
data which was overseen by Paul Harvey, B. Eng (Mining), MAusIMM, who is a
Member of the Australian Institute of Mining and Metallurgy and is a full time
employee of BHP Billiton Diamonds Inc. Mr. Harvey has sufficient experience,
which is relevant to the style and type of deposit and to the activity that he
is undertaking to qualify as a Competent Person as defined in the 1999 edition
of the 'Australasian Code for Reporting of Minerals Resources and Ore Reserves'.
The Competent Person consents to the inclusion in this report of the matters
based on their information in the form and context in which they appear.
Further information on BHP Billiton can be found on our Internet site: http://www.bhpbilliton.com
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Tracey Whitehead, Investor Relations Mark Lidiard, Investor & Media Relations
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email: Francis.R.McAllister@bhpbilliton.com email: Michael.J.Campbell@bhpbilliton.com
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