Rio Tinto is going down under.
Amid strong demand for diamonds in the U.S. and growing markets in China, India, and the Middle East, the mining giant says transitioning to underground mining operations at the Argyle and Diavik mines is key to its long-term plans.
In its annual review released late May, the company outlined its strategies for its diamond operations, which includes major investment in developing underground mining at the two sites. These operations are expected to come online by 2010.
Rio Tinto says it expects diamond demand to outgrow supply by 2016 due to new growth overseas.
“We cannot overlook the fact that the United States accounts for half of all diamond jewellery consumption,” said Bill Champion, managing director of the diamond business. “However, we must acknowledge the accelerating diamond jewellery sales in China, India, and the Middle East. These emerging markets are set to provide some solid insulation from any volatility in the US.”
