Rio Tinto to Invest $12.5 Million in Brazil Diamond Project
June 12, 05
Diversified mining giant Rio Tinto plans to invest $12.5 million to finance the development of the Pimenta Bueno diamond mine in north-west Brazil. Rio Tinto has exercised an option to buy a 51 percent holding in the project operated by Canadian junior miner Vaaldiam Resources in the far-off state of Rondonia which borders Bolivia.
Rio Tinto discovered the Pimenta Bueno kimberlite reserves in the 1990s but sold them to Vaaldiam in 2003 with an option to buy a controlling stake if further exploration led to positive results.
A Rio Tinto Brasil official in Rio de Janeiro confirmed the purchase. The value was not disclosed.