Rio: We Are Making Efforts to Keep Argyle Open

Rio Tinto Diamonds Managing Director Doug Ritchie aimed to reassure his mostly Indian audience at the Mines to Market International Diamond Conference that the company was making every effort to ensure production continued at its Australian Argyle mine.

Argyle is carrying out a feasibility study on underground mining at the site which would extend its life. Ritchie said the company would make an announcement about the mine’s future in the fourth quarter of this year.

“It would be most fair to say that we are not looking to close the Argyle mine,” he told the audience when asked about the future plans for the mine and the impact of closing it for India. “Most efforts are made to keeping it open.”

The Indian diamond industry relies heavily on Argyle production. Just last week reports suggested that a 10 million carat decline in Argyle supply to India last year would lead to large lay-offs at cutting and polishing plants in Surat – the country’s main production center.

Ritchie said that if underground mining was to be carried out, output from the mine would be around 15 million carats annually – about half the current supply. “Even if we do not decide to go underground, we will carry on production at the current rate until 2008” he added.