Rio says it's retaining diamond business to boost shareholder value

MELBOURNE, Australia – Anglo-Australian mining giant Rio Tinto says it has scrapped plans to sell its diamond business following a strategic review.

The company says after considering a number of ownership options, it has concluded that the best path to generate maximum value for shareholders is to retain the business.

The chief of Rio’s diamonds and minerals division, Alan Davies, says the medium to long-term market fundamentals for diamonds remain robust.

The company operates a fully integrated diamonds business from exploration through to sales and marketing.

Rio has 100 per cent ownership of the Argyle mine in Australia, 60 per cent of the Diavik mine in Canada and a 78 per cent interest in the Murowa mine in Zimbabwe.

It co-owns the Diavik mine in the Northwest Territories with Dominion Diamond Corp. (TSX:DDC), formerly Harry Winston.