Oct 21, 2016

Rio Tinto’s Q3 and 9M Diamond Production Up 3%

Mining conglomerate Rio Tinto released its 3rd quarter production results yesterday, reporting a 3.39% rise in diamond production for the three month period ended September 30, 2016 and a 2.52% rise for the nine month period ending on the same date. The company currently has a 100% stake in the Argyle Mine in Australia and a 60% stake in the Diavik Mine in Canada.

During Q3, the Company produced 4.42 mn carats as against 4.28 carats in the same period a year ago, while in the first nine months of 2016, production stood at 13.38 mn cts as compared to 13.05 mn cts in the comparative period a year earlier.

Giving details, the statement noted that carats produced at Argyle (Q3: 3.49 mct; 9M: 10.7 mct) were 3% higher in the first nine months compared with the corresponding period in 2015 following continued ramp-up of the underground mine resulting in higher volumes processed, which was partially offset by lower grades.

At Diavik, carats recovered (Q3: 1.55 mct; 9M: 5.01 mct) in the third quarter were slightly lower than the previous quarter, reflecting lower grades, offset by higher ore availability. Rio Tinto’s share in this output was 60% of production.

The Company also lowered its production guidance for 2016 which now stands at 18 to 20 million carats (previously 18 to 21 million carats).