Production at Canada’s Diavik Diamond Mine dropped 17 per cent in 2024, as Rio Tinto faced challenges stemming from a struggling global diamond market, a tragic plane crash at the mine, and the shift to underground mining operations at one of its pipes. The decline reflects broader difficulties within the diamond mining sector, where other major players have also seen significant losses.
According to National Jeweler, Rio Tinto reported that Diavik’s production totaled 2.8 million carats in 2024, down from 3.3 million carats the previous year. The company attributed some of the drop in output to the January 2024 plane crash near the mine, which tragically claimed the lives of four workers and led to a temporary halt in operations. In addition, the conclusion of open-pit mining at the A21 pipe further contributed to the decline.
In line with reduced production, Rio Tinto’s diamond division saw a 37 per cent fall in revenue, down to $444 million from $279 million in 2023. The division also experienced a loss of $127 million in 2024, a sharp contrast to the $26 million in underlying earnings reported the previous year. This downturn mirrors challenges across the diamond industry, with companies like De Beers and Petra Diamonds also facing steep declines in production and revenue, as per National Jeweler’s report.
Rio Tinto, which became the sole owner and operator of Diavik in November 2021, now relies on this mine as its only diamond operation following the 2020 closure of its Argyle mine in Western Australia. The company also noted plans to allocate approximately $1 billion a year to the closure of non-active mining sites, including Argyle.
Despite the downturn, Rio Tinto continues to explore new opportunities, with active projects underway in 17 countries, including diamond exploration in Angola.
