Rio Tinto, the Australian mining giant, reported its half-year financial update on July 31, revealing contrasting results in its diamond operations despite an overall increase in profits.
For the six months ending June 30, Rio Tinto’s total profits rose by 15 percent to $5.8 billion. However, its diamond sector faced significant challenges. The Diavik mine reported a loss of $65 million, a stark decrease from the $44 million profit recorded in the same period last year.
The company noted a 40 percent decline in diamond sales revenue, dropping from $250 million to $149 million. Production also decreased by 25 percent, from 1.924 million carats to 1.441 million carats. The financial update mentioned “lower volumes” without elaborating further.
Earlier this month, Rio Tinto acknowledged a 28 percent decline in Diavik’s production in Q2. This was attributed to difficulties in transitioning to underground operations and a tragic plane crash in January, which claimed the lives of four workers and two crew members. The incident involved a chartered Jetstream twin turboprop airliner crashing shortly after take-off from Fort Smith Airport.
