Rio Tinto Postpones Rough Tender Amid Diavik Slowdown

Rio Tinto has rescheduled its tender of run-of-mine rough diamonds from the Diavik deposit in Canada, citing lower production volumes.

The company’s sale of regular goods, which was due to take place from September 30 to October 2, has been pushed back until after the Indian holiday of Diwali, which runs from October 31 to November 1, Rio Tinto told Rapaport News.

“Geotechnical challenges at the mine in July [and] August have led to the rescheduling of some sale events for Rio Tinto’s Diavik,” said Patrick Coppens, general manager of sales and marketing for Rio Tinto’s diamond unit. “During September, we will offer a diverse collection of natural large white [over 10.8 carats] and fancy-colored specials from the last year’s production in a rough tender.”

However, the company will “prioritize” the lower run-of-mine supply it already has to its long-term partners, known as “Select Diamantaires,” in the short term, Coppens explained.

The shortage is the result of subsidence found in July on part of the road that leads to the A154 underground area, one of the two major mining pits at Diavik, forcing Rio Tinto to shut the area temporarily as a safety precaution. Subsidence causes a gradual caving, or sinking, of an area of land. The company also briefly paused production during the first half to allow workers to grieve for colleagues who had died in a plane crash.

In July, Rio Tinto reported a loss of $65 million at its diamond unit, compared to a profit of $44 million a year earlier, amid a 25% drop in output to 1.4 million carats.

The miner expects to return to a normal tender schedule in the short term.

“When production volumes are expected to normalize in the fourth quarter, we will resume with a balance of regular spot auctions and contractual sales to Rio Tinto Select Diamantaires,” Coppens added.

The company’s next sale is scheduled to take place from November 18 to 20. Diavik, which is Rio Tinto’s only diamond asset, is due to close in 2026.

Image: Rough diamonds. (Rio Tinto)