Hello Frank
Some interesting marketing information is these articles on yesterdays Ekati opening up here.
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First Canadian diamond mine begins production
Reuters Story - October 14, 1998 22:54
LAC DE GRAS, Northwest Territories, Oct 14 (Reuters) - Canada's first diamond mine began commercial production on Wednesday amid hope the country will become a major player in the glittering industry but with questions about how the gems will be marketed.
The Ekati mine's joint owners, Australian resources giant Broken Hill Pty. Co. Ltd. and Canadian junior miner Dia Met Minerals Ltd. , said all rough diamond production will initially be marketed through the BHP Diamonds' sales office in Antwerp.
The first shipment from the Canadian Arctic to Belgium is expected within the next two weeks, and initial sales will occur shortly thereafter, the companies said in a prepared statement.
BHP has estimated that Ekati, located about 300 kilometers (180 miles) northeast of Yellowknife, will produce between three and four million carats annually for the next 25 years -- roughly 4 percent of world's total diamond production.
Observers have said that with other mines under development in the area, Canada could produce 10 percent of the world's production by 2002, surpassing South Africa and rivaling senior producers such as Australia, Botswana and Russia.
Observers have been watching to see what, if any, marketing relationship BHP develops with the South African diamond cartel De Beers Consolidated Mines Ltd. , which controls about 70 percent of the market for uncut diamonds.
The Ekati owners said the Antwerp office has been beefed up with additional diamond experts, and that they are "confident" of its ability to market the full production even with the current soft diamond market. They said they are "very positive" about the longer term outlook.
"Discussions are continuing for the sale of a portion of production to large diamond companies. The conclusion of those discussions and decisions on other marketing options will be determined after the production has been evaluated during the initial marketing phase," the companies said.
Dia Met Minerals Ltd.: Remarks by James R. Rothwell, President, BHP Diamonds Inc. On the Occasion of the Official Opening of the Ekati Diamond Mine
Business Wire - October 14, 1998 16:41
LAC DE GRAS, Northwest Territories--(BUSINESS WIRE)--Oct. 14, 1998--Dia Met Minerals Ltd (TSE:DMM.A)(AMEX:DMM.A)(TSE:DMM.B) (AMEX:DMM.B) Minister Stewart, Minister Goodale, Premier Morin, distinguished guests.
We are pleased and honoured to have you with us today for the official opening of Canada's first diamond mine. Many of you, in one way or another, have played important roles in the realization of this dream. Ladies and Gentlemen, Canada is now in the diamond business.
Let me begin by congratulating and expressing deep appreciation to all of our BHP Diamonds' employees and to the men and women who have worked for our contractors and suppliers. Your efforts have made this magnificent new facility a reality and your achievements are truly remarkable. With the exception of this permanent camp building, all the other facilities and the mine that you have toured today have been built since May 1997 -- that is in less than 18 months. Construction of all this within that time frame in a well-serviced southern location would be a fine accomplishment -- but this has been done in the far North at a remote site with all the associated logistical and climatic challenges. It is good news for the North that this project is starting up on time and within budget as it should be an encouragement to others considering Northern investments. Certainly, everyone who has had a part in creating the Ekati Diamond Mine should feel very proud, indeed.
An outstanding safety record has accompanied the rapid progress in construction and this is a credit to BHP's philosophy that a strong safety commitment is good business. Our emphasis on safety and care for the welfare of our employees creates the environment of high morale, individual involvement and commitment, and productivity that is our objective.
I would like to thank the aboriginal representatives present and the Canadian and Northwest Territories Government leaders for your involvement and support for this project. We are very conscious of our role as new investors in the North who need to be sensitive to Northern culture and concerns and to the land we stand on today.
We are committed to being good stewards of the environment and to ensuring that benefits from this development flow to aboriginals and to the people of the North, generally. Our record during the construction phase has honoured this commitment, as has recruitment of the permanent work force which is approximately 70 percent Northern, half of which are aboriginal.
It is a great pleasure for me to say that the working relationship with our joint venture partners is excellent. Without the efforts of Dia Met Minerals, Chuck Fipke and Stewart Blusson, there would not have been a project for BHP to become involved with in 1990.
I also salute our BHP geologists and engineers and all of those involved in the resource evaluations, feasibility studies, environmental assessments and the EARP formal project approval process. These efforts helped identify issues and find approaches and solutions that enabled the rapid advancement that has been realized over the past two years. It was a successful co-operative endeavor involving our employees and government and community representatives working together with a common goal of seeing this project developed under conditions all could accept.
As well, it is important to acknowledge the efforts of those involved in other areas such as finance, marketing, personnel, security and external relations who have all made contributions essential to the success we are celebrating today. As I think about this occasion, I feel that it should be considered both an end and a beginning. It is the end of a very successful development process where constructing relationships with aboriginal groups, governments, communities and new employees has been as important as the physical construction of these facilities.
It is the beginning of the operating phase which we expect to last 20 or 25 years -- or even longer. We have all looked forward to this day, especially BHP and its partners who have had the faith to invest nearly $1 billion to create this new business.
We are determined to see the operating phase of the Ekati Diamond Mine match the good record to-date achieved by this project. As we enter the diamond market, we are aware that it is soft due to cyclical factors affecting the global economy. However, we expect attractive economic results from the outset and we are confident of our ability to market our full production, even in the current circumstances. Further, we are very positive about the diamond market outlook beyond the short term.
In this regard, let me assure you that appropriate marketing arrangements are being put in place. It is our intention that diamonds produced during the initial months as we gradually build toward our capacity production rate will all be sold through the BHP Diamonds office that has been established in Antwerp. This office is now staffed with experienced diamond people and it is ready to do business. We have a very attractive product, with many potential customers keen to purchase Canadian rough diamonds. Further, discussions are continuing with a number of major diamond companies eager to purchase a significant portion of the production. Our market entry strategy using the Antwerp Office will enable us to gain knowledge of our product and market experience and will provide time to establish representative samples of our diamonds that are necessary prior to finalizing any major sales commitments.
As we commence the operating phase, we will work hard to ensure that the strong relationships that are necessary for a successful long term business, including those with our customers in the marketplace and with all of you here, are maintained and strengthened.
Before concluding I want also to thank God for the excellent progress we've seen with the development of the Ekati Diamond Mine. This is a complex and challenging project and things could not have come together as smoothly as they have but by the grace of God. We have much to be thankful for.
Thank you very much for being with us here today to celebrate this special event.
CONTACT: BHP Diamonds Inc.
Graham Nicholls, 867/669-6101
867/669-6724 (FAX)
or
Dia Met Minerals Ltd.
Gerald Prosalendis, 250/861-8660
250/861-3649 (FAX)
Email: corporat@diamet.com
Website: diamet.com
Dia Met Minerals: BHP Diamonds Inc. / Dia Met Minerals Ltd. Announce Commencement of Production and Initial Marketing Plan
Business Wire - October 14, 1998 16:11
LAC DE GRAS, Northwest Territories--(BUSINESS WIRE)-- Oct. 14, 1998--Dia Met Minerals(TSE:DMM.A.) (AMEX:DMM.A) (TSE:DMM.B.) (AMEX:DMM.B) BHP Diamonds Inc. and Dia Met Minerals Ltd. are pleased to announce that the Ekati Diamond Mine is now in production.
Construction of the mine has been completed on schedule and within budget. Commissioning is well advanced and all critical process equipment has been tested and is operational. The ramping up of production began in early October and has progressed smoothly, while fine tuning work will continue for the next several weeks.
An official opening ceremony was held today at the mine site, attended by about 125 guests. A commemorative plaque for the occasion was unveiled by BHP Chairman J.K. Ellis and the Honourable Jane Stewart, Minister of Indian and Northern Affairs Canada.
All rough diamond production from the Ekati Diamond Mine will initially be marketed through the BHP Diamonds (Belgium) sales office, located in Antwerp, Belgium. The first shipment of rough diamonds to the sales office is expected to occur within the next two weeks, and initial sales will occur shortly thereafter.
"The Ekati Diamond Mine marks an exciting new growth opportunity for BHP. We look forward to operating a successful mine for the next twenty-five years and beyond," said Mr. Ellis.
New safety records for the Northwest Territories were achieved during construction, and targets for local and aboriginal employment and business expenditures have been met and exceeded. Approximately 70 percent of employees are northern residents, of which over half are aboriginal.
"The entire construction program progressed as planned, with an outstanding safety record. This is a considerable achievement, taking into account the remote location and harsh climate, and is a tribute to our employees and contractors", said BHP Chief Operating Officer Ron McNeilly.
"Everyone who has had a part in creating the Ekati Diamond Mine should feel very proud indeed", said BHP Diamonds Inc. President J.R. Rothwell.
"In 1985, Charles Fipke found diamond indicator minerals in the Lac de Gras area, and now, thirteen years later, we are celebrating the opening of Canada's first diamond mine. The contribution of Chuck, and in the earlier stages, Stewart Blusson, must be recognized and applauded," said Dia Met President James Eccott. "Also, without the participation of BHP, this project would still be in its infancy. Since 1990, when the joint venture agreement was signed, our relationship with BHP has been excellent," he said.
The Antwerp sales office will sell distinct assortments of rough diamonds each month to qualified core clients, who are being selected on the basis of their experience, financial strength, and the compatibility between their requirements and the available supply. In addition, a small portion of the production will be sorted in greater detail and sold to numerous clients in Antwerp for the purpose of determining current market prices for specific qualities.
The sales office is fully staffed. Sales and sorting managers with extensive experience in the diamond industry have been added to BHP management staff already located in Antwerp, and qualified sorters and administrative employees have been hired from the local industry. IDH Diamonds NV, which has extensive experience as a rough diamond dealer and has demonstrated the skills to bring new production to market, will continue to provide consulting services to the sales office.
"As we enter the diamond market, we are aware that it is soft due to cyclical factors affecting the global economy. However, we are confident of our ability to market our full production even in the current circumstances and we are very positive about the diamond market outlook beyond the short term," said Mr. Rothwell. "We have a very attractive product, with many potential customers keen to purchase Canadian rough diamonds".
"We are confident as we move to the next stage of production and marketing, that with BHP's leadership, the project will continue to add value for Dia Met's shareholders while providing enormous benefits for local communities. These are exciting times," said Mr. Eccott.
Diamonds for manufacturing facilities in the Northwest Territories will initially be delivered from Antwerp. Construction of the sorting and valuation facility at the Yellowknife airport has commenced and completion is scheduled for the first quarter of 1999. Diamond sales from the facility will be possible once the necessary expertise for sorting and handling diamonds has been developed in the NWT.
Discussions are continuing for the sale of a portion of production to large diamond companies. The conclusion of those discussions and decisions on other marketing options will be determined after the production has been evaluated during the initial marketing phase.
James R. Rothwell, President, BHP Diamonds Inc.
James E. Eccott, President Dia Met Minerals Ltd.
CONTACT: BHP Diamonds Inc.
Graham Nicholls, 867/669-6101
867/669-6724 (FAX)
or
Dia Met Minerals Ltd.
Gerald Prosalendis, 250/861-8660
250/861-3649 (FAX)
Email: corporat@diamet.com
Website: diamet.com
Dia Met announcement/output starts
Reuters Story - October 14, 1998 15:57
(Full text of press release from Canadian Corporate News)
OCTOBER 14, 1998
Dia Met Minerals: BHP Diamonds Inc. / Dia Met Minerals Ltd.
announce commencement of production and initial marketing plan
LAC DE GRAS, NORTHWEST TERRITORIES--BHP Diamonds Inc. and
Dia Met Minerals Ltd. are pleased to announce that the Ekati
Diamond Mine is now in production. Construction of the mine
has been completed on schedule and within budget.
Commissioning is well advanced and all critical process
equipment has been tested and is operational. The ramping up
of production began in early October and has progressed
smoothly, while fine tuning work will continue for the next
several weeks. An official opening ceremony was held today at
the mine site, attended by about 125 guests. A commemorative
plaque for the occasion was unveiled by BHP Chairman J.K. Ellis
and the Honourable Jane Stewart, Minister of Indian and
Northern Affairs Canada.
All rough diamond production from the Ekati Diamond Mine
will initially be marketed through the BHP Diamonds (Belgium)
sales office, located in Antwerp, Belgium. The first shipment
of rough diamonds to the sales office is expected to occur
within the next two weeks, and initial sales will occur shortly
thereafter.
"The Ekati Diamond Mine marks an exciting new growth
opportunity for BHP. We look forward to operating a successful
mine for the next twenty-five years and beyond," said Mr.
Ellis.
New safety records for the Northwest Territories were
achieved during construction, and targets for local and
aboriginal employment and business expenditures have been met
and exceeded. Approximately 70 percent of employees are
northern residents, of which over half are aboriginal.
"The entire construction program progressed as planned,
with an outstanding safety record. This is a considerable
achievement, taking into account the remote location and harsh
climate, and is a tribute to our employees and contractors",
said BHP Chief Operating Officer Ron McNeilly.
"Everyone who has had a part in creating the Ekati Diamond
Mine should feel very proud indeed", said BHP Diamonds Inc.
President J.R. Rothwell.
"In 1985, Charles Fipke found diamond indicator minerals in
the Lac de Gras area, and now, thirteen years later, we are
celebrating the opening of Canada's first diamond mine. The
contribution of Chuck, and in the earlier stages, Stewart
Blusson, must be recognized and applauded," said Dia Met
President James Eccott. "Also, without the participation of
BHP, this project would still be in its infancy. Since 1990,
when the joint venture agreement was signed, our relationship
with BHP has been excellent," he said.
The Antwerp sales office will sell distinct assortments of
rough diamonds each month to qualified core clients, who are
being selected on the basis of their experience, financial
strength, and the compatibility between their requirements and
the available supply. In addition, a small portion of the
production will be sorted in greater detail and sold to
numerous clients in Antwerp for the purpose of determining
current market prices for specific qualities.
The sales office is fully staffed. Sales and sorting
managers with extensive experience in the diamond industry have
been added to BHP management staff already located in Antwerp,
and qualified sorters and administrative employees have been
hired from the local industry. IDH Diamonds NV, which has
extensive experience as a rough diamond dealer and has
demonstrated the skills to bring new production to market, will
continue to provide consulting services to the sales office.
"As we enter the diamond market, we are aware that it is
soft due to cyclical factors affecting the global economy.
However, we are confident of our ability to market our full
production even in the current circumstances and we are very
positive about the diamond market outlook beyond the short
term," said Mr. Rothwell. "We have a very attractive product,
with many potential customers keen to purchase Canadian rough
diamonds".
"We are confident as we move to the next stage of
production and marketing, that with BHP's leadership, the
project will continue to add value for Dia Met's shareholders
while providing enormous benefits for local communities. These
are exciting times," said Mr. Eccott.
Diamonds for manufacturing facilities in the Northwest
Territories will initially be delivered from Antwerp.
Construction of the sorting and valuation facility at the
Yellowknife airport has commenced and completion is scheduled
for the first quarter of 1999. Diamond sales from the facility
will be possible once the necessary expertise for sorting and
handling diamonds has been developed in the NWT.
Discussions are continuing for the sale of a portion of
production to large diamond companies. The conclusion of those
discussions and decisions on other marketing options will be
determined after the production has been evaluated during the
initial marketing phase.
James R. Rothwell, President, BHP Diamonds Inc.
James E. Eccott, President Dia Met Minerals Ltd.
FOR FURTHER INFORMATION PLEASE CONTACT:
BHP Diamonds Inc.
Graham Nicholls
Manager, External Affairs
(867) 669-6101
(867) 669-6724 (FAX)
or
Dia Met Minerals Ltd.
Gerald Prosalendis
Manager, Investor Relations and Corp. Communications
(250) 861-8660
(250) 861-3649 (FAX)
Email: corporatdiamet.com
Website: diamet.com
Regards |
