Rio Tinto's diamond mining company, Rio Tinto Diamonds reported 15% increase in gross revenue to $706 mn as against $613 mn in the year 2016; and a 20% rise in EBITDA to $287 mn in comparison to $239 mn in 2016, due to 20% increase in production from the previous year. Net earnings for the year almost doubled to $92 mn from $ 47 mn in 2016.
Rio Tinto Diamonds, which owns 100% of the Argyle mine in Australia and 60% stake in the Diavik mine in Canada registered a rise in carat production from 17.95 mn cts in 2016 to 21.63 mn cts in 2017. The higher carat production at Argyle was attributed to the additional processing of higher grade alluvial tailings, while the increase at Diavik was due to higher grades recovered by the miner.
According to the results, development of the A21 pipe at Diavik remains on schedule and within budget. While dike construction and de-watering are complete, production is planned for mid-2018. Rio Tinto also announced that its diamond production guidance for 2018 is between 17 and 20 mn cts.
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough & Polished