Rio Tinto’s Rough Diamond Sales Rise 52 percent in 2010
The mining giant revealed...Rio Tinto’s diamond sales rose 52 percent year on year to $682 million in 2010, the company reported.
The increasing was spurred by higher rough prices and rising demand from the Far East. Net earnings from the diamond business were $70 million for the year, compared with a loss of $68 million in 2009.
In a statement, Rio Tinto said, “Rough diamond prices demonstrated a robust recovery throughout 2010 as demand from emerging markets, notably India and China, accelerated.”
However, the company noted that sustainability of the recovery in the short run remains dependent upon U.S. consumer confidence.
Rio Tinto has full ownership of the Argyle min in Australia and a 60 percent stake in the Canada’s Diavik mine. The company also holds a 77.8 percent share of Zimbabwe’s Murowa mine. Combined production at these assets fell 1 percent to 13.843 million carats in 2010.
Production fell due to the processing of lower grade ore at the Argyle mine's open pit. During the year, Rio Tinto approved an $803 million investment to complete the underground development, and expected to be fully operational by 2013. The underground development will extend the life of mine beyond 2019.
Rio Tinto also started underground mining at Diavik and began pre-feasibility studies at its Bunder project in India.
The company’s operating diamond assets were valued at $1.19 billion at year end 2010.
By: JewelryOurs
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