Rio Tinto Limited
(ASX:RIO) says its new $2.2 billion underground diamond mine at Argyle will produce up to 20 million carats a year, according to media reports.
Rio opened the mine in the remote East Kimberley region of Western Australia, flagging it as a major milestone for the company.
The mining giant says the mine will extend Argyle's overall mine life until at least 2020.
Argyle managing director Kim Truter says the mine will help feed the global deficit in diamonds around the world.
He says since the mine opened in 1983 it has produced 800 million carats, or around 160,000 tonnes of diamonds.
Rio Tinto reported a net loss of $2.9 billion in the 2012 financial year.
