Rise of 21% in production from Diavik mine in Canada in first quarter

The rise mostly resulted from an improvement in each of the kimberlite pipes at the mine which is 60-40 owned by Rio Tinto and Dominion Diamond Corporation, respectively. Rio Tinto reported a 4-percent decline overall on the year in diamond output for the first quarter.

Dominion Diamond Corporation, formerly Harry Winston Diamond Corp, reported a 21% jump on a year earlier in diamond output from the Diavik mine in Canada in the first quarter to 1.9 million carats, according to the Rapaport web site.

The rise mostly resulted from an improvement in each of the kimberlite pipes at the mine, with an average of 3.87 carats for each tonne of ore compared with 3.03 carats per tonne a year before.

Dominion and Rio Tinto recently approved a new mining program and updated budget for 2013. According to forecasts, production at the mine is this year expected to reach six million carats – a rise of 40 percent on 2012, with all mining being underground.

Output of diamonds in the first quarter was 3.24 million carats, a rise of 4% on a year earlier. Production at Rio Tinto's fully owned Argyle diamond mine in Australia was 1.99 million carats, down 15 percent. However, at the Murowa mine in Zimbabwe, where Rio Tinto has a 78-percent holding, output rose 20 percent from a year earlier to 79,000 carats.

Rio Tinto foresees total diamond production this year of 14. Million carats – 13% more than the figure for 2012.