29 May 2008
Rio Tinto's diamond business invests in the future
LONDON, UK, May 2008 - Rio Tinto's Diamonds Annual Review was released today with a strong message about an integrated diamond business focussed on a long term commitment to the diamond industry.
Against a background of strong industry fundamentals, the Annual Review outlines Rio Tinto's approach to diamond exploration through to the mining and marketing of production from its three operational diamond mines.
Of key importance to Rio Tinto's future diamond portfolio is the transition to underground mining at both its Australian (Argyle) and Canadian (Diavik) diamond mining operations. Bill Champion , Managing Director of Rio Tinto's diamond business comments, " Rio Tinto's diamond assets are world class and we have made a major investment in developing underground mining at both the Argyle and Diavik diamond mines. The resulting operations will be lean, technologically advanced and world's best in terms of safety, productivity and operating costs".
Rio Tinto's underground diamond productions will come on stream around 2009/2010, a time most likely to be characterised by strong demand for diamonds. Between now and 2016, even under the most optimistic supply scenario, demand will outgrow supply. Commenting on the outlook for the diamond industry Mr Champion notes, "We cannot overlook the fact that the US accounts for half of all diamond jewellery consumption, however we must acknowledge the accelerating diamond jewellery sales in China, India and the Middle East. These emerging markets are set to provide some solid insulation from any volatility in the US."
Essentially focussed on the sales and marketing of rough diamonds, Rio Tinto continues to develop innovative sales and marketing initiatives and support its customers in their downstream activities. In addition to its new release of champagne diamond promotional material, the ongoing marketing of its rare pink diamonds and the fostering of strong customer relations through its Select Diamantaire programme, Rio Tinto's diamond business is proactive in its involvement in sustainable development and corporate social responsibility.
Whilst Rio Tinto's strategic alliance with the Indian diamond industry is well documented, of recent times it has partnered with Wal-Mart to provide the world's largest retailer with sustainably produced jewellery. According to Mr Champion, "these and other initiatives are indicative of our diamond business's commitment to providing a legacy of stronger, healthier and enviromentally secure businesses."