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Strong Prices Drive Rio Tinto Profit Surge

Jul 31, 2022 7:12 AM   By Leah Meirovich
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 Revenue and profit from Rio Tinto’s diamond division soared in the first half of the year as demand strengthened and manufacturers replenished inventory.

The unit recorded underlying earnings of $91 million for the six months ending June 30, the miner said last week. That compared with $5 million a year earlier, when the economy was only beginning its recovery from the pandemic.

Revenue more than tripled to $465 million during the period amid higher rough prices, versus $160 million in the first half of 2021. In addition, Rio Tinto was able to sell 100% of production from the Diavik mine in Canada after taking full ownership of the deposit at the end of last year. In the first half of 2021, Rio Tinto owned 60% of the site, with Dominion Diamond Mines holding the remainder.

Production rose 15% to 2.1 million carats at Diavik. Rio Tinto expects to produce 4.5 million to 5 million carats in 2022. That figure is lower than the 5 million to 6 million carats it originally predicted, due to challenges arising from Covd-19, it said.

Image: Rough diamonds from the Diavik mine. (Diavik Diamond Mines)
Tags: Canada, diamonds, Diavik, Diavik mine, Dominion Diamond Mines, Leah Meirovich, Rapaport News, Rio Tinto, Rough Diamonds
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