17 July 2012
Rio Tinto reports that its share of diamond production for the second quarter of 2012 totaled 2.808 million carats, up 3 percent year over year but down 16 percent compared to the first quarter of 2012. For the first six months of the year, Rio Tinto produced 6.167 million carats from its three mines, an 18 percent volume increase year over year.
Argyle
Rough diamond production at Rio Tinto's wholly owned Argyle mine in Western Australia for the second quarter of 2012 totaled 1.677 million carats, an increase of 6 percent from the corresponding period of 2011 due to higher grade ore, but a decrease of 28 percent compared with the first quarter of 2012 due to lower grades and a planned processing plant shutdown. Production for the first half of 2012, totaling 4.006 million carats, was 24 percent higher than the first half of 2011, due primarily to the impact of heavy rains and flooding in March 2011.
According to Rio Tinto, development of the underground mine, as the open pit draws to a close, has resulted in significant variation in ore feed grades into the plant. Construction of the underground mine is proceeding and scheduled to commence in the first half of 2013.
Diavik
Rio Tinto's 60 percent share of diamond production from the Diavik mine in Canada's Northwest Territories totaled 1.075 million carats during the second quarter of the year. This was consistent with the corresponding period in 2011 and 12 percent higher than the first quarter of 2012, due to higher open-pit volumes and improved grades.
The miner's share of Diavik diamond production for the first half of the year totaled 2.038 million carats, an 8 percent increase year over year.
Murowa
The miner's 78 percent share in the Murowa diamond mine in Zimbabwe totaled 56,000 carats during the second quarter. This signifies a 30 percent drop in production year over year.
Rio Tinto's share of production for the half-year period totaled 123,000 carats, down 2 percent from the first half of 2011.
Looking Forward
Rio Tinto expects its share of diamond production to reach 14.6 million carats for 2012. In March, the miner announced a strategic review of its diamond business that includes exploring a range of options for potential divestment of its diamond interests. This review is still ongoing.
