Canadian gems sell in Antwerp

Canadian producers BHP Diamonds and Dia Met Minerals (DMM-T) have sold the first parcel of rough diamonds from their Ekati mine north of Yellowknife, N.W.T.

BHP Diamonds, a subsidiary of Broken Hill Proprietary (BHP-N), owns 51% of the spanking new mine, whereas Dia Met holds 29%. The remainder is held equally by Dia Met Chairman Charles Fipke and his former prospecting partner, Stewart Blusson.

In total, 68,500 carats were sold for US$8.5 million, which represents production from October and November of 1998. The initial sale did not include larger stones of 10.8 carats and up produced during this period, which will be marketed separately.

James Rothwell, president of BHP Diamonds, says the positive market response to the initial sales demonstrates the high quality of rough diamonds produced from Ekati.

Through a sales office in Antwerp, BHP will sell diamonds regularly to core clients on a 4-to-5-week cycle. In addition, the company says window sales of small parcels will be an ongoing part of the market program, “while consideration for a bulk sale of run-of-mine production to De Beers remains under consideration.”