[miningmx.com] — RIO Tinto said on Tuesday it has begun a strategic review of its diamonds business, a move which may include divesting from all its current interests.
Rio Tinto operates three diamond mines, Argyle in Australia (100% interest), Diavik in Canada (60%) and Murowa in Zimbabwe (78%). The company also owns Bunder, an advanced diamonds project in India (100%).
“We regularly review our businesses to ensure they remain aligned with Rio Tinto’s strategy of operating large, long-life, expandable assets,” said Harry Kenyon-Slaney, Rio Tinto’s chief executive of Diamonds & Minerals.
“The diamonds market outlook is very positive, with demand growing strongly and lack of new discoveries limiting supply. We have a valuable, high quality diamonds business, but given its scale we are reviewing whether we can create more value through a different ownership structure.
“This process may take some time. We’re committed to keeping stakeholders informed about any key developments, and in the meantime are reassuring employees and the governments in the states and countries where we operate that it is very much business as usual.”
