Rio Tinto cutting back production at Argyle mine

by eyetee | February 17, 2009 12:00 am

SB_0895 — Rio Tinto says it is shutting down its diamond processing facilities at the Argyle mine for three months beginning in March as a cost-saving measure.

Fewer diamonds will be coming out of Rio Tinto’s Argyle mine in 2009.

The company says the current global economy is spurring it to implement a debt reduction plan that will see the mine’s underground project cut back to only critical development activities.

The move will mean a reduction in workforce and demoblization of contractors.

“Given global market conditions, we will also reduce diamond production by taking an extended maintenance shutdown of the diamond processing facilities for up to three months, commencing in March,” said Kevin McLeish, chief operating officer for Argyle Diamonds.

“Employees directly affected will be redeployed to maintenance, training, and plant improvement activities, as well as taking leave.”

The Argyle diamond mine averages 20 million carats every year and is the largest producer of pink diamonds.

“We remain convinced the diamond business has excellent long-term prospects,” McLeish added. “Argyle has at least 10 years of world-class resources remaining and is well placed to continue as a major player in this industry for many years to come.”

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