An executive at Rio Tinto Ltd
(ASX:RIO) has told media that the miner’s diamond business is going through a transition phase as the industry moves from open-pit to underground mining operations.
Rio is the third largest diamond producer in the world by volume with operations in Australia, North America and Africa.
According to Reuters, chief executive of Rio’s diamond and minerals division, Harry Kenyon-Slaney, says the focus for the miner at the moment is to move its two large projects from open pit to underground.
Mr Kenyon-Slaney told Reuters that Rio’s view over the medium to long term is that the supply and demand fundamentals for the diamond sector are very positive.
He says the industry is seeing a declining supply of diamonds, mainly driven by the fact that many large open pit operations around the world are drawing to an end of their lives and moving underground.
Rio Tinto earned $7.36 billion in the 6 months to June 30, 2010.
