OTHER

End of the line close for major diamond mine

Rio Tinto has confirmed its iconic Argyle diamond mine in Western Australia’s Kimberley region will close this year.

Staff reporter
 Argyle diamonds

Argyle diamonds

The mine produced just under 13 million carats in 2019, down 8%, with lower grades partially offset by an increase in mining and processing rates.

Rio Tinto has dropped global diamond guidance for 2020 to 12-14Mct from 17Mct produced last year.

It said Argyle would close in the fourth quarter of this year.

The date was the best-case scenario for the depleting mine, with Rio previously flagging this year as the end of the line, but warning it could come sooner.

The mine, which supplies almost all of the world's rare pink, red and violet diamonds, was discovered 40 years ago and has operated continuously since 1983.

At its peak, the mine produced 40% of world diamond output by volume. It still accounts for all of Australia's diamond production.

Argyle employs more than 400 people and consultations are underway with employees.

Rio Tinto said Argyle's direct contribution to the East Kimberley represented about 6% of the region's gross regional product.

The company will submit a mine closure plan to regulators this year after incorporating feedback from traditional owners.

Rio Tinto anticipates it will take five years to decommission and dismantle the mine and undertake rehabilitation, followed by a further period of time for monitoring.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.