Strong Prices Drive Rio Tinto Profit Surge

RAPAPORT... Revenue and profit from Rio Tinto's diamond division soared in the first half of the year as demand strengthened and manufacturers replenished inventory.The unit recorded underlying earnings of $91 million for the six months ending June 30, the miner said last week. That compared with $5 million a year earlier, when the economy was only beginning its recovery from the pandemic. Revenue more than tripled to $465 million during the period amid higher rough prices, versus $160 million in the first half of 2021. In addition, Rio Tinto was able to sell 100% of production from the Diavik mine in Canada after taking full ownership of the deposit at the end of last year. In the first half of 2021, Rio Tinto owned 60% of the site, with Dominion Diamond Mines holding the remainder.Production rose 15% to 2.1 million carats at Diavik. Rio Tinto expects to produce 4.5 million to 5 million carats in 2022. That figure is lower than the 5 million to 6 million carats it originally predicted, due to challenges arising from Covd-19, it said.Image: Rough diamonds from the Diavik mine. (Diavik Diamond Mines)