$127m Diamond Loss for Rio Tinto
February 27, 25
(IDEX Online) - Rio Tinto reported a $127m loss for 2024 from its Diavik diamond mine, in Canada, as weak market conditions led to "fixed cost inefficiencies".
That compares with underlying earnings of $26m in 2023. Rio Tinto's diamond sector generated $297m of revenue during the year, a 37 per cent drop on $444m the previous year.
The British-Australian multinational emailed over 1,300 employees last September, offering them voluntary separations to reduce operating costs as it prepares to close the mine next year.
In its Full Year Results 2024 the company noted the tragic loss of four Diavik workers and two air crew when a plane headed for the mine crashed last January.
Rio Tinto reported a 17 per cent drop in production, from 3.3m carats in 2023 to 3.4m carats in 2024.
The company acquired full ownership of the mine in November 2021 after it bought out a 40 per cent stake from Dominion Diamond Mines.