JOHANNESBURG (Commodity Online): BHP Billiton said diamond production rose 1 per cent year on year to 780,000 carats during its first fiscal quarter, which ended September 30, 2009.

Compared with the previous quarter, the group’s diamond production fell 14 per cent due to lower ore processing at its 80 per cent-owned Ekati mine in Canada.

Production continues to be influenced by the variability of ore sources due to the mix of open pit and underground mining, the company said in a production report.

BHP Billiton noted that there was increasingly positive economic news in most countries during the quarter, singling out China as a strong growth center.

Chinese economic growth continues to be robust on the back of strong domestic-focused consumption and infrastructure-based stimulus spending, the company explained.

China’s re-stock of commodities is essentially complete and there is now evidence of higher-than-normal stockpiles across the supply chain.

BHP Billiton added that it expects Chinese imports to more closely reflect real demand for the remainder of 2009. While the group recognized some positive signs in industrial production within developed economies, it stressed that unemployment in the US, Japan and Europe continues to lag and may trend higher in the near-term.

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