Rio Tinto Diamond Profit Back on Track

RAPAPORT… Rio Tinto’s diamond division returned to profit in the first half of the year as demand picked up amid the reopening of the economy.

The unit recorded a profit of $5 million for the six months ending June 30, the miner said last week. That compared with a loss of $40 million a year earlier, when the company incurred an impairment charge of $441 million related to its Diavik mine in Canada. Meanwhile, diamond sales grew 13% to $160 million.

Production rose 2% to 3.1 million carats at the company’s Diavik mine. Although Rio Tinto’s diamond unit recovered 7.7 million carats in the first six months of 2020, that included output from the Argyle mine in Australia, which closed in November.

Rio Tinto expects to produce 3 million to 3.8 million carats from Diavik in 2021.

Image: The Diavik mine. (Diavik Diamond Mines)