BHP Billiton diamonds-sale review ongoing

[Elsha]

BHP Billiton Ltd. (BHP, BHP.AU) continues to pursue the possible sale of its diamonds mining business, but De Beers SA has ruled itself out of the running for the Canadian operation.

BHP in November launched a review of its diamonds unit, which centers on the Ekati diamond mine, located some 200 kilometers south of the Arctic Circle, and said it would consider the sale of all or part of the business. In December, it agreed to sell its 51% stake in the Chidliak diamonds exploration project on Canada's Baffin Island to venture partner Peregrine Diamonds Ltd. (PGDIF, PGD.T).

The process is still ongoing, Fiona Martin, a spokeswoman for the mining giant in Melbourne, said Sunday. She declined to comment further on the process.

De Beers, one of the world's largest producers and marketers of diamonds, won't bid for Ekati, said Lynette Gould, a spokeswoman for De Beers in London.

"De Beers is very comfortable that it currently has the best diamond mining assets in the world, and management's focus is on maximizing their value," Ms. Gould said in an emailed reply to questions.