Diamond net earning increase at Rio Tinto in H1 of 2008

Diamonds have seen an increase in demand and sale at Rio Tinto, where the net earning from diamonds increased by 20 percent to $108 million, during the first six months of 2008. The company has been exploring new markets and seeing an increase in demand for diamonds during the six months, in which demand for better quality goods has been stronger than that for lower quality goods. The price hike in roughs has contributed to the 20 percent increase in net earnings of diamonds.

Overall, the company’s group net earnings surged by 113 percent to $6.91 billion, and revenues by 115 percent to $30 billion. Diamond production has slipped by 31 percent to 7.853 million, in the six months with its mines have shown a mixed level of profitability. The Argyle mine showed a decline in earnings by 10% to $26 million due to high production costs, Diavik mine generated 25 percent increase to $80 million with higher rough prices and sales volumes, while the Murowa mine which broke even in the first half of 2007, stood at $3 million, attributable to higher volumes.