Rio Tinto Has 'Multiple Options' for Diamond Business

(IDEX Online News) – Rio Tinto is “looking at multiple options" for its diamond business and plans to sell the diamond assets are “well advanced,” according to Chief Financial Officer Guy Elliott.

Speaking with reporters, Elliott said “The diamonds sector looks interesting and healthy certainly as you look into the medium- and longer-term, in view of the low levels of supply and continuing strong demand.”

The mining giant is looking to divest from less profitable divisions, including its aluminum operations.

He did not disclose who the possible buyers are, or what other options the firm has if some – or none – of the assets are sold.

Harry Winston, which holds a 40 percent stake in Diavik, has a right of first refusal to buy Rio's 60 percent stake in the diamond mine. Harry Winston would “be interested in putting that to work,” Chief Executive Officer Robert Gannicott said June 13.

Elliott said that while over the years there have been occasional discussions about uniting Diavik and Ekati, "there are certainly no such current discussions.”