Rio Tinto Diamond Revenue Drops

RAPAPORT... Diamond sales at Rio Tinto fell 5% to $323 million in thefirst half of the year, the miner reported Wednesday. Net profit for the division nearly tripled to $55 millionfrom $19 million a year ago. Production increased 9% to 9.2 million caratsprimarily due to higher output at the Argyle mine, offsetting lower recoverylevels at Diavik. Rio Tinto's development of the A21 project, an expansion of theDiavik mine, is ahead of schedule, the company said. It expects the extension toreach full production during the fourth quarter. The miner maintained its overall production forecast of 17million to 20 million carats for this year. Rio Tinto holds 100% of the Argyle mine in Australia, aswell as 60% of Diavik in Canada, which it owns in partnership with DominionDiamond Mines.