28th Jun 2006 11:44
BHP Billiton PLC28 June 2006 28 June 2006Number 22/06 BHP BILLITON APPROVES KOALA UNDERGROUND PROJECT BHP Billiton today announced the approval of the Koala Underground Project atthe EKATI Diamond Mine in Canada. The project will recover approximately 9.8million carats of high value Koala diamonds over an eleven year production lifeat a capital cost of approximately US$250 million (BHP Billiton share US$200million). Initial production is expected in the December 2007 quarter and fullproduction is expected to be reached by mid calendar year 2009. President Diamonds and Specialty Products, Alberto Calderon said: "Koalaunderground will supply around 25% of the mine feed (3,300 tonnes per day) tothe plant while producing 40% of the diamond output by value. As well asdelivering margins three times greater than the material it displaces, thisdevelopment will also partially offset the natural decline in production gradesand quality that occurs as the mine matures. The development of the Koalaunderground project follows the successful completion of the Panda undergroundmine at Ekati, earlier this year. Panda was completed on time and on budget, andis currently producing in excess of nameplate capacity." BHP Billiton has an 80% interest in the EKATI Diamond Mine. The information in this report that relates to Ore Reserves is based on compiled data which was overseen by Denis Gratton P. Eng., B. Eng (Mining), and is afull time employee of BHP Billiton Diamonds Inc. Mr. Gratton has sufficientexperience, which is relevant to the style and type of deposit and to theactivity that he is undertaking to qualify as a Competent Person as defined inthe 1999 edition of the "Australasian Code for Reporting of Minerals Resourcesand Ore Reserves". The Competent Person consents to the inclusion in this reportof the matters based on their information in the form and context in which theyappear. Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.com Australia United KingdomSamantha Evans, Media Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Jane Belcher, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 Tel: +44 20 7802 4195 Mobile: +44 7920 237 246email: [email protected] email: [email protected] United States South AfricaTracey Whitehead, Investor & Media Relations Alison Gilbert, Investor RelationsTel: US +1 713 599 6100 or UK +44 20 7802 4031 Tel: SA +27 11 376 2121 or UK +44 20 7802 4183Mobile: +44 7917 648 093 email: [email protected]: [email protected] BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209Registered in Australia Registered in England and WalesRegistered Office: Level 27, 180 Lonsdale Street Melbourne Registered Office: Neathouse Place London SW1V 1BH UnitedVictoria 3000 KingdomTelephone +61 1300 554 757 Facsimile +61 3 9609 3015 Telephone +44 20 7802 4000 Facsimile +44 20 7802 4111 The BHP Billiton Group is headquartered in Australia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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