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Rio Tinto's 4Q Diamond Production -37%
Jan 20, 2015 3:18 AM
By Ronen Shnidman
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RAPAPORT... Rio Tinto’s total rough diamond output declined 37 percent year on year to 2.841 million carats during the fourth quarter that ended on December 31. The company attributed the sharp reduction in output to a maintenance shutdown and the transition from open pit to underground mining at its Argyle mine in Australia, as well as a shift toward lower-grade-ore processing at its Diavik mine in Canada.
Production at Argyle fell 43 percent to 1.813 million carats during the quarter. Rio Tinto’s 60 percent stake in Diavik’s production fell 25 percent to 927,000 carats after improved processing rates at the mine’s treatment plant fully exhausted its stockpile of higher-grade ore in the previous quarter. The company’s 78 percent share of output at the much smaller Murowa mine in Zimbabwe fell 4 percent to 101,000 carats.
The Diavik mine is operated by Rio Tinto and Dominion Diamond Corporation, which holds a 40 percent stake. The Murowa mine is operated by Rio Tinto with a 22 percent stake held by junior partner Riozim Limited. Australia’s Argyle mine is fully owned and operated by Rio Tinto.
For the calendar year, Rio Tinto’s annual rough diamond production dropped 14 percent to 13.872 million carats due to the decline in production at Argyle caused by the transition to underground mining. Output at Argyle fell 19 percent to 9.188 million carats in 2014. Diavik’s production was flat for the year at 4.34 million carats, while the amount of diamonds recovered from Murowa increased 7 percent to 344,000 carats.
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Tags:
Argyle, Diavik, Murowa, Rio Tinto, Ronen Shnidman, rough output, Rough Production, underground mining
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