[miningmx.com] – TORONTO-based Harry Winston Diamond Mines has bought BHP Billiton’s Ekati diamond mine for $500m, a deal that also includes BHP’s marketing operations in Canada’s Yellowknife and Antwerp.
The purchase price is near the top end of analysts’ valuation for the operation which generates $750m a year in revenue, equal to 6% of world supply by value. Investec put a value of between $300m to $500m on the mine in January, said Bloomberg News.
The sale, which will be completed in the first quarter of 2013, furthers BHP Billiton’s quest to form a simpler business, said Andrew Mackenzie, CEO of BHP’s non-ferrous unit, in the statement.
“Completion of this acquisition will bring the opportunity to marry our Canadian diamond sorting and marketing skills with an experienced mine operating and development team, a world- class operating asset, and future growth potential,’ said Harry Winston CEO Robert A Gannicott in a statement.
The Ekati mine, which has a current life of mine of some seven years, is Canada’s first and largest diamond-producing mine.
It may not be the last acquisition of Harry Winston. The company said in the past that it was interested in Rio Tinto’s 60% stake in Diavik mine in Canada’s Northwest Territories. Harry Winston owns the other 40% of Diavik.
