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Rio Tinto's Diamond Revenue +2% in 2012
Feb 14, 2013 2:50 AM
By Avi Krawitz
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RAPAPORT... Rio Tinto reported that revenue from its diamond operations rose 2 percent to $741 million in 2012. Despite the increase, the division posted a net loss of $43 million compared with earnings of $10 million the previous year.
Rio Tinto owns the Argyle mine in Australia, 60 percent of Diavik in Canada and 78 percent of the Murowa mine in Zimbabwe. Total production attributed to the company rose 12 percent to 13.122 million carats during the year. Rio Tinto forecast diamond production of 13.9 million carats in 2013.
The company did not provide an update to the strategic review of its diamond business, which was originally announced in March 2012. The company took an impairment charge of $460 million related to the Argyle mine and a $40 million charge for other impairments incurred during the year. The impairment review of Argyle was triggered by the company's strategic review of diamond assets as well as changes to the projected ramp-up date for the underground mine, Rio Tinto explained.
Production at the Argyle underground mine is expected to start in the second half of 2013, after construction on the project was slowed in 2009. The group’s capital expenditure on diamond projects rose 53 percent to $680 million.
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Tags:
Argyle, Avi Krawitz, diamonds, Diavik, Murowa, Rapaport, Rio Tinto
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