Rio Tinto Diamond Production Declines 20% in 2008
January 15, 09
Fourth quarter diamond production by Rio Tinto totaled 6.854 million carats, a 12 percent year-over-year decline. While this production is an increase compared to the third quarter, full year production declined 20 percent to 20.816 million carats, the company said Thursday in a quarterly operations review.
Fourth quarter production at Argyle declined 12 percent year-over-year. However, improved access to the higher grade areas of the pit in the quarter resulted in 13 percent higher diamond production compared with the third quarter.
On Wednesday, Rio Tinto announced that the Argyle underground mining project will be slowed to critical development activities and the diamond processing facilities will undergo an extended maintenance shut down of up to three months, commencing in March.
Fourth quarter production at Diavik was 12 percent below the same quarter of 2007, primarily a result of the overall reduction in grade that commenced in the fourth quarter of 2007.
At Murowa in Zimbabwe, diamond production of 43,000 carats was the lowest level of production in the last five quarters. However, total annual production increased to 205,000 carats from 113,000 carats in 2007.
In terms of exploration, order of magnitude studies were completed at the Bunder diamond project in India and management of the project has been handed to Rio Tinto Diamonds.