Revenues Up in 2013 as Rio Tinto Diamonds Swings to Profit

(IDEX Online News) – Revenue from diamond sales rose to $852 million in 2013 from $741 million in 2012, reported mining giant Rio Tinto.

And net earnings were $53 million compared with a loss of $25 million in the 20102.

The miner reported a 22-percent rise on the year in output to 16.03 million carats from 13.12 million carats.

The firm said the rise "mainly reflected increased tonnes processed and higher grades at Argyle following the commissioning of the underground mine in April 2013, and the transition from the open cut mine. Diavik has completed the transition to a fully underground mine, with all three pipes now at full production."

Rio Tinto's diamond assets include 100 percent of the Argyle mine in Australia, 60 percent of the Diavik mine in Canada's NorthWest Territories, and 78 ‎percent of the Murowa mine in Zimbabwe.

Rio Tinto forecasts diamond ‎production of 16 million carats for this year.

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"Polished diamond prices were relatively stable throughout 2013 whilst slightly greater volatility was experienced in prices for rough diamonds.

"The Argyle underground mine commenced production in April 2013 and is ramping up to full capacity. This will extend the mine life of Argyle until at least 2020."

Rio is investing $2.2 billion in the expansion at Argyle with $300 million of approved capital to be spent on the project this year.