BHP Billiton has approved the Misery open pit project at its Ekati Diamond Mine in the Northwest Territories, Canada, the company announced this week.

This project consists of pushing back the existing Misery open pit that was mined from 2001 to 2005. Stripping operations are expected to begin in October 2011, with ore production beginning late 2015 and final production from Misery in mid-2017.

The estimated capital expenditure required to complete the execution phase is $323 million.

“With the approval of the Misery project, we are able to continue to make the most of the resources at Ekati and also continue our proud legacy," said Graham Kerr, outgoing president of BHP Billiton Diamonds and Specialty Products.

Ekati is the most prolific diamond mine in North America, producing some 3% of all rough diamonds in the world by volume and 5% by value. Last month, BHP Billiton signed a long-term supply contract to provide rough diamonds to the Canadian jewelry manufacturer Corona Jewellery Company for its Maple Leaf Diamonds brand.

In related news, BHP Billiton has appointed Tim Cutt as President, Diamonds and Specialty Products, in place of Kerr. BHP Billiton will be relocating the Diamonds and Specialty Products business from Vancouver to Saskatoon, where Cutt will be based.