Rio Tinto’s diamond division faced financial losses in the first half of 2024 due to declining revenue amidst global market challenges and reduced production.
According to reports from Wednesday, sales from Rio Tinto’s Diavik mine in Canada decreased by 40% year-on-year to $149 million for the six months ending June 30. The diamond unit reported an underlying loss of $65 million, contrasting with a $44 million profit from the previous year.
The company did not specify reasons for these results, but they reflect a worldwide downturn in demand for rough diamonds during the first half of the year. Sales of polished diamonds were slow, and inventories in the midstream sector increased.
Production of rough diamonds also declined by 25% year-on-year to 1.4 million carats for the first half of the year. This decrease was partly due to operational interruptions following a fatal plane crash at the Diavik mine, which is wholly owned by Rio Tinto.
Rio Tinto’s diamond division struggled amid challenging market conditions, resulting in significant financial setbacks for the first half of 2024.
