Despite Q3 Jump, 23% Decline in Rio Tinto’s 2008 Diamond Production
October 15, 08
Third quarter production at Rio Tinto’s Argyle diamond mine reached 4.659 million carats, a 4 percent year over year decline, but a 56 percent jump compared to the second quarter. Diavik’s production declined 26 percent year-over-year and 8 percent from the previous month.
The increase in Argyle’s production follows the re-establishment of access to the high grade areas of the pit resulting in improved feed grade and higher throughput, Rio Tinto reported in a quarterly operations review.
Rio’s 60 percent share of Diavik’s production was 1.393 million carats. The decline was primarily attributed to an overall reduction in grade that started in the fourth quarter of 2007.
Diamond production at Murowa in Zimbabwe rose handsomely. Rio’s 78 percent share netted 58,000 carats compared to 31,000 in the third quarter of 2007.
Total diamond production for the miner totaled 6.11 million carats in the quarter, a 10 percent year-over-year decline, a 34 percent rise from the previous quarter. In the first nine months of 2008, diamond production declined 23 percent in volume compared to 2007.
Gold production by mining group totaled 130,000 ounces in the third quarter, a 51 percent decline compared to the third quarter of 2007 but a 14 percent increase from the preceding quarter.
In the nine month period, gold mining declined to 337,000 ounces from 745,000 ounces the year before.
Rio Tinto said that early-stage diamond exploration continued in India, Canada, Russia and the Democratic Republic of Congo (DRC).
It reported record quarterly global production of iron ore, up 17 percent on the third quarter of 2007 and record production for the U.S. coal business.
The multi commodity mining and exploration company, which is facing a takeover bid by rival BHP Billiton, noted a deceleration in Chinese growth, expecting it to fall from nearly 12 percent in 2007 to less than 10 percent this year.
In his outlook, chief executive Tom Albanese said, “The long term outlook for Rio Tinto remains positive despite the upheavals in global markets.”