Rio Tinto has postponed its upcoming tender for run-of-mine rough diamonds from the Diavik deposit in Canada due to reduced production levels.
The company’s sale, originally set for September 30 to October 2, will now occur after the Diwali holiday, which is from October 31 to November 1, according to Rapaport News.
Patrick Coppens, general manager of sales and marketing for Rio Tinto’s diamond division, explained that “geotechnical challenges” at the mine in July and August were behind the schedule change. He added that in September, the company will offer a selection of large white diamonds (over 10.8 carats) and fancy-colored specials from the past year’s production in a rough tender.
In the meantime, Rio Tinto will prioritize the available lower run-of-mine supply for its long-term partners, known as “Select Diamantaires,” Coppens said.
The production delay was caused by subsidence discovered in July along a road leading to the A154 underground area at Diavik, one of the mine’s two main pits. This issue led to a temporary shutdown for safety reasons. Additionally, production was briefly halted earlier in the year to allow workers to mourn colleagues who died in a plane crash.
In July, Rio Tinto reported a $65 million loss in its diamond division, a sharp contrast to the $44 million profit reported the previous year. The company also saw a 25% decrease in output, dropping to 1.4 million carats.
Rio Tinto expects to return to its normal tender schedule soon. Coppens noted that with production anticipated to normalize in the fourth quarter, the company will resume a mix of regular spot auctions and contractual sales to its Select Diamantaires.
The next scheduled sale will be from November 18 to 20. Diavik, Rio Tinto’s sole diamond asset, is set to close in 2026.
