Perth, Sept 21, 2006 (ABN Newswire) - Operators of South East Asia's only diamond mine are to expand the project's production from next month to produce up to 100,000 carats per annum.

Addressing the Paydirt Asia Pacific Downunder Conference in Perth today, AIM-listed BDI Mining Corp (LSE: BMG)(PNK: BDVIF) said its Cempaka alluvial diamond mine would lift output next month from its current rate of 30,000 bank cubic metres of diamondiferous gravels per month to 60,000 bcm per month.

This would lift diamond output to approximately 7,000-8000 carats per month, subject to grade, from 3,500-4,000 carats per month currently.

The US$1.5 million expansion at Cempaka - South East Asia's first and only commercial diamond mine, in southeast Kalimantan - is coming from the addition of two rotary pan plants from South Africa.

"We have now built up considerable operational and management skills for Cempaka which features diamond bearing gravels in concealed palaeochannels," BDI Mining's Managing Director, Me Lee Spencer, said.

"Our mining leases are covered by a 7th generation Contract of Work agreement and with diamond demand now outstripping supply, we had every incentive to expand production within this commodity cycle," Mr Spencer said

"In addition to the 2006 end of year production lift, there remains considerable scope for further regional expansion around Cempaka and these options will be considered during calendar 2007."