The Argyle diamond mine
The Argyle Mine, which is 100 per cent owned by Rio Tinto, has been operating since 1983. The mine has produced over 670 million carats of rough diamonds and generated more than US$6 billion in revenue.
Located in the east Kimberley region in the remote north of Western Australia, the Argyle mine is the world's largest supplier of diamonds, producing approximately 30 million carats each year. The Argyle Mine's production accounts for approximately one-fifth of the world's natural diamond production.
Argyle operates an open pit mine to recover diamonds from the site's AK1 lamproite pipe.
The AK1 pipe continues at depth, and in 2005, the Rio Tinto Board approved the recommendation to proceed with an underground mine below the existing AK1 open pit. This will extend the life of the mine to around 2018. Construction of the underground mine commenced in early 2006. At the end of 2006, 10.4 kilometres of underground development in four main access declines had been completed, out of a total of 40 kilometres scheduled for the project. The Argyle underground block cave undercut is expected to commence on schedule in 2008. The total ore reserves as at the end of 2006 were 106 million tonnes, at an average grade of 2.1 carats per tonne.
The Argyle underground mine is supported by three-year contracts. This was an innovative approach to ensure supply certainty and price performance. A minimum of 80 per cent of the Argyle volume is under contract and Rio Tinto Diamonds is working closely with its customers to ensure that the contracts deliver the underlying value over the remaining two years.
The diamonds recovered at Argyle are sorted and prepared for international sale by Rio Tinto Diamonds in Antwerp, Belgium. The majority of customers for the Argyle product are based in India where a Rio Tinto Diamonds representative office is located in Mumbai.
The Argyle mine is characterised by a high level of efficiency, safety and productivity, coupled with a commitment to quality management, a skilled workforce and state-of-the-art technology. Argyle is committed to a number of key priorities that are essential to the success of its mining operations, including the safety of all employees, the preservation of the environment and the development of strong and enduring relationships with local communities. Regionally Argyle is a significant contributor to the east Kimberley in employment, infrastructure, tourism and flow-on business.
Further information
