$127m Diamond Loss for Rio Tinto

Rio Tinto reported a $127m loss for 2024 from its Diavik diamond mine, in Canada, as weak market conditions led to “fixed cost inefficiencies”.

That compares with underlying earnings of $26m in 2023. Rio Tinto’s diamond sector generated $297m of revenue during the year, a 37 per cent drop on $444m the previous year.

The British-Australian multinational emailed over 1,300 employees last September, offering them voluntary separations to reduce operating costs as it prepares to close the mine next year.

In its Full Year Results 2024 the company noted the tragic loss of four Diavik workers and two air crew when a plane headed for the mine crashed last January.

Rio Tinto reported a 17 per cent drop in production, from 3.3m carats in 2023 to 3.4m carats in 2024.

The company acquired full ownership of the mine in November 2021 after it bought out a 40 per cent stake from Dominion Diamond Mines.

Source: Idex

Rio Tinto’s Diavik Mine Slides into the Red

Rio Tinto Diavik mine

Rio Tinto today reported a slump in half-yearly sales and production as its Diavik diamond mine in Canada slid into the red.

The Australian mining giant reported a 15 per cent increase in overall profits across all divisions to $5.8bn for the six months to 30 June, but its diamond operation suffered a $65m loss. During the same six months of 2023 it made a $44m profit.

The Half Year Results made passing mention of “lower volumes” of diamonds, but chief executive Jakob Stausholm offered no explanation.

Revenue from diamond sales was down 40 per cent during H1, from $250m to $149m. Production fell 25 per cent, from 1.924m carats to 1.441m carats.

Earlier this month the company said production at Diavik had fallen by by 28 per cent during Q2, impacted by the transition to underground operations and the plane crash in January that killed four of its workers and two crew members. A chartered Jetstream twin turboprop airliner crashed shortly after take-off from Fort Smith Airport.

Source: Idex

Rio Tinto to spend $40m on Diavik diamond mine expansion

Rio Tinto is going ahead with a $40 million expansion of its iconic Diavik diamond mine in the Northwest Territories of Canada, which will extend the operation’s life to at least early 2026.

The approved first phase of the project will expand diamond extraction underground, below the existing A21 open pit. Mining of that area, opened in 2018, recently concluded.

A second phase an additional cost will be put forward for approval in 2024, Rio said.

Phase one below A21 is slated to produce an extra 1.4 million carats, with phase two adding another 800,000 carats.

“This is good news for our employees, partners, suppliers and local communities in the Northwest Territories,” Sinead Kaufman, Rio Tinto Minerals’ chief executive, said in a statement.

Rio Tinto became in 2021 the sole owner of the operation, after buying the 40% share held until then by Dominion Diamond Mines.

The company has operated Diavik since production began in 2003. Located approximately 300 km north-east of Yellowknife, the mine employs over 1,100, of which 17% are Northern Indigenous people.

Diavik is Canada’s largest diamond mine in terms of production with between 6 and 7 million carats of rough diamonds produced each year. Since mining began in 2003 Diavik has produced over 100 million carats of diamonds.

The Northwest Territories’ two other diamond mines – Ekati, operated by Arctic Canadian Diamond and De Beers-Mountain Province’s Gahcho Kué – are expected to close in 2024 and 2028, respectively.

Diavik is about 30 km southeast of Ekati, and Gahcho Kué is 125 km southeast of Diavik.

Source: Mining.com

Rio Tinto to Sell Final Argyle Specials

Rio Tinto Diavik Helios a 74.48 carat Fancy yellow diamond

Rio Tinto will launch a tender of large rough diamonds, including the last of its special stones from the Argyle deposit in Australia.

The miner will feature 28,399 carats of special-sized rough — weighing more than 10.8 carats — from Argyle at the sale, which will take place in October and November, Rio Tinto said Tuesday. Colored diamonds from the site, which is due to close at the end of the year, as well as a 26-carat, gem-quality rough, will also be available.

“The Argyle rough diamonds presented at this tender are a final rare and collectible offering from one of the world’s greatest diamond mines,” noted Andrew Wilson, general manager of Argyle.

Rio Tinto will also offer large diamonds from its Diavik mine in Canada, including the Diavik Helios, which will headline the sale. The 74.48-carat, fancy-yellow diamond was named for the pure yellow sunlight emitted by the mythical Greek sun god.

“The Diavik Helios is an exceptional diamond in terms of its color saturation and clarity, and will be in strong demand from colored-diamond specialists around the world,” said Patrick Coppens, general manager of sales and marketing for Rio Tinto’s diamond business.

The company will showcase the diamonds physically in Antwerp and Tel Aviv, Israel, prior to the sale. It will also hold virtual and online viewings due to Covid-19 travel restrictions, it said. 

Source: Diamonds.net