Rio Tinto Predicts Production of 15 Million Carats in 2012

The Argyle Diamond Mine

(IDEX Online News) – Rio Tinto expects to produce 15 million carats of diamonds this year, according to a first quarter 2012 operations review published by multi-miner today (Tuesday).

For full-year 2011, Rio Tinto diamond production was just over 11.3 million carats.

The review reveals that rough diamond production at the company’s fully owned Argyle mine was almost 2.5 million carats an increase of 52 percent compared to the first quarter of 2011 when operations were affected by heavy rains and flooding.

Production at the Australian mine increased 30 percent compared to the fourth quarter of 2011 when plant shutdowns limited production.

Overall, Argyle is currently mining slightly higher-grade ore in the final open cut deposit.

Construction of the underground mine was proceeding and is scheduled to be complete by the end of 2013, the company said.

Production at the Diavik mine in Canada was 19 percent higher than the first quarter of 2011. This increase was attributed to the ramping up of underground operations, improved grades and higher throughput.

The mine produced 963,000 carats during the quarter compared to 812,000 carats in the first quarter of 2011.

Rio Tinto also operates the Murowa mine in Zimbabwe. In the first quarter, the mine produced 66,000 carats compared to 45,000 carats of diamonds in the first quarter of 2011.

Last month, Rio Tinto announced a strategic review of its diamond business that will include exploring a range of options for potential divestment of its diamonds interests.