Rio Tinto to Invest $265 Million at Diavik Mine

Diversified miner Rio Tinto says it is to invest $265 million in projects at the Diavik mine in Canada’s North West Territories in which it holds a 60 percent stake.

Of the sum, $190 million will be spent on building a mine at its A418 dike. Construction will start next summer, while first production from the A418 pit will be in early 2008.

The company will also spend $75 million on a study to examine the feasibility of underground mining at Diavik, which it expects to complete in the first half of 2007.

The study will include the building of an exploratory decline and a process plant optimization program.

“The development of the A418 open pit and, subsequently, the underground mines will enable Diavik Diamonds to capture the additional value due to better than anticipated process plant performance and higher than anticipated diamond values,” Rio Tinto said in a statement.

The other 40 percent of Diavik is owned by Aber Diamond Corp.