Rio Tinto Diamond Revenue Declines

RAPAPORT… Diamond sales at Rio Tinto fell 5% to $323 million in the
first half of the year, the miner reported Wednesday.



Net profit for the division nearly tripled to $55 million
from $19 million a year ago. Production increased 9% to 9.2 million carats
primarily due to higher output at the Argyle mine, offsetting lower recovery
levels at Diavik.


Rio Tinto’s development of the A21 project, an expansion of the
Diavik mine, is ahead of schedule, the company said. It expects the extension to
reach full production during the fourth quarter.


The miner maintained its overall production forecast of 17
million to 20 million carats for this year.


Rio Tinto holds 100% of the Argyle mine in Australia, as
well as 60% of Diavik in Canada, which it owns in partnership with Dominion
Diamond Mines.