Rio Tinto Diamonds says it will remain with the diamond business despite its decision last week to put out of the Bunder project in India.
Simon Farry, vice president for sales and marketing for copper and diamonds said: “We firmly believe the fundamentals of the global diamonds market remain robust.
“The decision to withdraw from Bunder was based on commercial considerations specific to the project as part of Rio Tinto’s ongoing efforts to conserve cash and reduce costs right across our business.”
In addition to the Argyle mine in Australia, Rio Tinto owns 60 percent of the Diavik mine in Canada.
It also owned 78 percent of the Murowa mine in Zimbabwe, but last year, following government pressure, it sold its interest.
Meanwhile, Farry says Argyle and Diavik will “continue to provide an important source of ongoing supply to the diamond industry. The development of our fourth pipe at Diavik is proceeding on schedule and will be an important source of incremental supply, ensuring the continuation of existing production levels."
He also stressed that Rio Tinto’s relationship with the Indian diamond industry is thriving.
