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TORONTO – BHP Billiton is selling its diamonds business to Toronto-based Harry Winston Diamond Mines Ltd. for US$500 million in cash.

The deal includes the mining Anglo-Australian mining company’s stake in the Ekati diamond mine in the Northwest Territories.

Under the deal, BHP Billiton’s employees working at Ekati, in Yellowknife and in diamonds marketing in the Belgian city of Antwerp will join Harry Winston.

Harry Winston already owns a 40 per cent stake in the Diavik mine in the Northwest Territories in a joint venture with Rio Tinto, another Anglo-Australian mining giant.

The Ekati mine is Canada’s first diamond mine — is 310 kilometres northeast of Yellowknife and 200 kilometres south of the Arctic Circle.

BHP Billiton says the sale will see it take a $200-million charge related to the carrying value of the assets.

BHP Billiton’s stake in the project includes an 80 per cent interest in the existing operations and a 58.8 per cent interest in the buffer zone joint venture, primarily focusing on exploration.

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