Wednesday, February 3, 2010

Rio Tinto (NYSE:RTP) May Restart Argyle Diamond Mine

Rio Tinto

Rio Tinto (NYSE:RTP) is reportedly very close to deciding on whether to restart the Argyle diamond mine in Australia, according to chief executive for diamonds and minerals, Harry Kenyon-Slaney.

Kenyon-Slaney said, "The diamond market has certainly recovered. It went through a very difficult time as consumer spending was reigned in. But we have been encouraged by the recovery in the diamond market in recent months."

He added as far as restarting the mine, there are some things to work out before it could happen. "We are hopeful of being able to start it but that depends on the approval of our investment committee. We are continuing to work on how and when the restart might take place."

The mine began construction in 2006, but not long afterwards the economic conditions forced it to stop development and wait till things improved and commodity markets recovered.

Rio is also excited about another diamond mine possibility, this one in India, which would make it a first for the country. It is being decided on whether to initiate a feasibility study at this time to go forward with what has been labeled the Bunder project.

Rio Tinto

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