BHP Billiton Diamonds Inc. » Country: Canada » Location: Northwest Territories » Commodity: Diamonds MW was retained to develop the initial Resource Development Plan (RDP) for the EKATI™ Diamond Mine in northern Canada to assist BHP Billiton in maximizing the economic value and financial performance of the asset. The RDP broadly defined which economic kimberlite pipes get developed, in which order, at which production volumes and qualities to meet the expected needs of the rough diamond market over the long term, consistent with BHP Billiton Diamonds Inc. commodity strategy. The EKATI™ diamond mine is located within a prolific cluster of economic kimberlite pipes in Canada’s Northwest Territories. The project is extremely remote and the only year-around access is by aircraft. Bulk supplies and equipment are trucked to the mine during winter months when the 400 km long ice road is operational from Yellowknife to the mine site. The main challenge in maximizing the economic value and financial performance of this particular asset is the simultaneous commissioning, operation, and closure of open pit and underground mining operations at various kimberlite pipes to ensure continuous ore release and plant feed at design throughput. Resource development issues at this remote location went far beyond the normal requirements of mine design and regulatory compliance. In addition to these normal requirements there are significant issues of risk assessment, bulk supply logistics, environment and permitting, human resources, and camp accommodation for over 1,000 people. MW provided the RDP that essentially replaced the initial project feasibility study and serves as the new financial performance baseline for the anticipated life of the project. This was accomplished by comparing the NPV of various scenarios representing mining sequences and plant throughput capacities with associated capital investment, operating costs, and revenue streams. The Resource Development Plan presented to and accepted by BHP Billiton Diamonds Inc. is an aggressive yet realistic and achievable combination of ore release rates and plant expansion. During the entire process, MW worked alongside EKATI™ personnel to ensure the best available information and techniques were utilized to truly represent the economic potential of the resource, and to ensure transfer of knowledge to the Client. EKATI™ personnel now execute the RDP and update it as required without the assistance of MW. © 2004 Morgan Worldwide, Inc. All Rights Reserved | Contact