Production Falls in Rio Tinto's Third Quarter

RAPAPORT... Recovery of lower-grade ore at Rio Tinto's Argyle and Diavikmines led to a 17% drop in production in the third quarter.Output came to 4.9 million carats for the three monthsending September 30, the company said Tuesday. The Argyle asset in Australiayielded 3.8 million carats, plummeting 19% over the same period last year. Lastyear, Rio Tinto's production was enhanced by the processing of higher-gradealluvial tailings, the miner said.  Lower-grade ore also affected production at Diavik, where Rio Tinto's share of the goods fell 9% to 1.1 million carats. The miner owns a 60%stake in the Canadian asset, with Dominion Diamond Mines holding the remainder, and the companies split the output accordingly.  Diavik's A21, a fourth pipe located just south of the mine'sexisting operations, officially opened in August. Ore extraction began in March, with the owners expecting to reach commercial production during thefourth quarter. Carat recovery at Argyle slipped 1% in the first nine months of theyear, reaching 10.9 million carats, while production at Diavik slid 4% to 3.3million carats for the period. Total yield for both mines dropped 2% to 14.1million carats. The miner expects to produce 17 million to 20 million caratsfor the year, compared to 21.6 million carats last year. Image: Rio Tinto's Argyle mine, Western Australia. (Rio Tinto)