BHP Billiton PLC Sale of Diamonds Business (0221R)

TIDMBLT

RNS Number : 0221R

BHP Billiton PLC

13 November 2012

 
NEWS RELEASE 
Release Time   IMMEDIATE 
Date           13 November 2012 
Number         27/12 
 

SALE OF DiAMONDS BUSINESS

BHP Billiton has signed definitive agreements to sell its diamonds business, comprising its interests in the EKATI Diamond Mine and Diamonds Marketing operations, to Harry Winston Diamond Mines Ltd. (Harry Winston) for an aggregate cash consideration of US$500 million. The transactions are subject to regulatory approval and other customary conditions. Completion is expected in the first quarter of calendar year 2013.

Under the terms of the agreements, Harry Winston will assume all of BHP Billiton's obligations under EKATI's Environmental Agreement with the Government of Canada and the Northwest Territories, Socio-Economic Agreement with the Government of the Northwest Territories, Impact and Benefit Agreements with Aboriginal Groups and pension liabilities linked to the mine's defined benefit scheme. Harry Winston is also committed to maintaining EKATI's environmental standards and will continue to work with local businesses and communities in the Canadian North. All BHP Billiton employees working at EKATI, in Yellowknife and in Diamonds Marketing in Antwerp will become employees of Harry Winston as part of the transaction.

BHP Billiton Diamonds & Specialty Products President Tim Cutt said: "We are very proud of EKATI's track record and the substantial value it has created for the region and our shareholders. The mine's success is a credit to the people who work there, at Yellowknife and with the marketing team in Antwerp. Harry Winston has long experience in the Canadian diamond industry and their commitment to study further development at EKATI could help extend the mine's contribution to Northern Canada for many years to come."

BHP Billiton Chief Executive Non-Ferrous Andrew Mackenzie said: "The divestment of EKATI is consistent with our focus on large, long-life, low-cost, expandable, upstream assets and, together with the recent sale of our interests in Richards Bay Minerals and Yeelirrie, reflects our ongoing pursuit of a simpler business."

The EKATI joint venture parties holding the minority interests in the EKATI mine hold pre-emptive rights to purchase BHP Billiton's interests and have 60 days from the date they are provided with notice to exercise such rights. Harry Winston's agreements to purchase BHP Billiton's EKATI interests are subject to the expiration or waiver of these pre-emptive rights and other customary regulatory and closing conditions.

The divestment of EKATI will result in an impairment of approximately US$200 million (post tax) to the carrying value of the asset which will be reflected as an exceptional item in BHP Billiton's financial results.

About EKATI

EKATI is located 310 kilometres northeast of Yellowknife and 200 kilometres south of the Arctic Circle. It was Canada's first diamond mine. BHP Billiton's interest in EKATI consists of an 80 per cent interest in the Core Zone Joint Venture, comprising existing operations and a 58.8 per cent interest in the Buffer Zone Joint Venture, primarily focusing on exploration targets.

Further information on BHP Billiton can be found at: www.bhpbilliton.com.

 
 Media Relations                                           Investor Relations 
                                                            Australia 
  Australia 
                                                            James Agar 
  Antonios Papaspiropoulos                                  Tel: [phone] Mobile: 
  Tel: [phone] Mobile:                              [phone] 
  [phone]                                           email: [e-mail] 
  email: [e-mail] 
                                                            Andrew Gunn 
  Fiona Hadley                                              Tel: [phone] Mobile: 
  Tel: [phone] Mobile:                              [phone] 
  [phone]                                           email: [e-mail] 
  email: [e-mail] 
  Eleanor Nichols                                           United Kingdom and South Africa 
  Tel: [phone] Mobile: 
  [phone] email: [e-mail]    Tara Dines 
  United Kingdom                                            Tel : [phone] Mobile 
                                                            : [phone] 
  Ruban Yogarajah                                           Email : [e-mail] 
  Tel: [phone] Mobile: 
  [phone]                                          Americas 
  email: [e-mail]                    Brendan Harris 
  Americas                                                  Tel: [phone] Mobile: 
  Jaryl Strong                                              [phone] 
  Tel: [phone] Mobile:                              email: [e-mail] 
  [phone] 
  email: [e-mail]                       Matt Chism 
                                                            Tel: [phone] Mobile: 
                                                            [phone] 
                                                            email: [e-mail] 
 
   BHP Billiton Limited ABN 49                               BHP Billiton Plc Registration 
   004 028 077                                               number 3196209 
   Registered in Australia                                   Registered in England and Wales 
   Registered Office: 180 Lonsdale                           Registered Office: Neathouse 
   Street                                                    Place 
   Melbourne Victoria 3000 Australia                         London SW1V 1BH United Kingdom 
   Tel [phone] Fax +61                              Tel [phone] Fax +44 
   3 9609 3015                                               20 7802 4111 
                   Members of the BHP Billiton Group which is headquartered in 
                                             Australia 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

DISUORSRUWAAAAA