Rio Tinto Diamond Production Up as Gold Production Sinks

(IDEX Online News) – Rio Tinto produced 3.71 million carats of diamonds during its third quarter, 5 percent year-over-year increase. The rise is mainly credited to higher grades at Argyle.

Compared to the second quarter of the year, production increased 32 percent, Rio Tinto stated in a production report.

In the first nine months of 2012, the company mined 9.9 million carats, up 13 percent year-over-year.

Rough diamond production of 2.45 million at Argyle was seven percent higher than during the corresponding third quarter period of 2011. Production was 46 percent higher than the second quarter of 2012 due to a combination of access to a high-grade region of the pit and increased plant reliability, the miner said.

Construction of the Argyle underground mine is proceeding and production is scheduled to commence in the first half of 2013, with ramp up to full operation to be completed by 2015.

Rio Tinto's 60 percent share of the Diavik production was 1.16 million carats recovered in the third quarter and in line with the corresponding period in 2011. Production was 8 percent higher than the second quarter of 2012.

Production at Murowa totaled 92,000 carats, a 27.8 percent year-over-year increase.

In 2012, Rio Tinto’s share of production is expected to be 12.6 million carats. The company did not comment on its diamond business review and possible divestment from it.

While diamond production is improving, gold mining is shrinking. Rio mined 68,000 ounces of gold in the quarter, a 59.8 percent drop. Production to date of 222,000 ounces is 56.9 percent decline.