Rio Tinto Limited
(ASX:RIO) is feeling bullish about diamonds and has opted to maintain exposure in the sector after looking into the option of divesting its business.
The global miner has interests in diamond mines in Australia, Canada, Zimbabwe and India and says the medium to long-term market fundamentals for diamonds remain robust.
Growing demand for luxury goods in Asia and strong demand in North America is expected to fuel demand for the gemstone.
After undertaking a strategic review Rio Tinto believes its diamonds business is well positioned to capitalise on this positive market outlook.
In contrast rival miner BHP Billiton Limited
(ASX:BHP) sold its diamonds business for $US500 million in April, marking the company’s exit from the diamond industry.
Rio Tinto booked a net loss of $2.9 billion in the 2012 financial year.
