Rio Tinto on Shortlist for Joint Venture with Alrosa

(IDEX Online News) - Rio Tinto is interested in Russian diamond reserves, possibly joining forces with state-owned Alrosa, reports the Financial Times. Demand for rough diamonds is at an all time high.

The rising demand for diamond jewelry from China coupled with the inability of current mines to meet demand from the markets, is what has prompted the move, the report says. Rio Tinto is said to be on the final shortlist to form a partnership with Alrosa to develop the Lomonosov deposit, near the port of Archangel in Russia’s far north.

Rio Tinto CEO Tom Albanese reportedly made several trips to Russia over the past year, prompting speculation that something was in the works. Rio Tinto has no current mining interests in Russia.

Alrosa is said to be keen on a joint venture partner as it is looking at outlays of billions of dollars in developing other deposits.