BHP Billiton PLC Sale of Diamonds Business (0221R)
November 13 2012 - 9:11AM
UK Regulatory
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: +61 3 9609 2222 Mobile:
Tel: +61 3 9609 3830 Mobile: +61 467 807 064
+61 477 325 803 email: James.Agar@bhpbilliton.com
email: Antonios.Papaspiropoulos@bhpbilliton.com
Andrew Gunn
Fiona Hadley Tel: +61 3 9609 3575 Mobile:
Tel: +61 3 9609 2211 Mobile: +61 439 558 454
+61 427 777 908 email: Andrew.Gunn@bhpbilliton.com
email: Fiona.Hadley@bhpbilliton.com
Eleanor Nichols United Kingdom and South Africa
Tel: +61 3 9609 2360 Mobile:
+61 407 064 748 email: Eleanor.Nichols@bhpbilliton.com Tara Dines
United Kingdom Tel : +44 20 7802 7113 Mobile
: +44 7825 342 232
Ruban Yogarajah Email : Tara.Dines@bhpbilliton.com
Tel: +44 20 7802 4033 Mobile:
+44 7827 082 022 Americas
email: Ruban.Yogarajah@bhpbilliton.com Brendan Harris
Americas Tel: +44 20 7802 4131 Mobile:
Jaryl Strong +44 7990 527 726
Tel: +1 713 499 5548 Mobile: email: Brendan.Harris@bhpbilliton.com
+1 281 222 6627
email: Jaryl.Strong@bhpbilliton.com Matt Chism
Tel: +1 71 359 96158 Mobile:
+1 281 782 2238
email: Matt.E.Chism@bhpbilliton.com
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 +61 1300 55 4757 Fax +61 Tel +44 20 7802 4000 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
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