Rio Tinto to spend $350 Million for Canadian Diamond Mine Development

Rio Tinto PLC has okayed a $350 million extension at Diavik diamond mine in Canad, says a report.

The development project involves construction of a fourth pipe, known as A21 that will help the miners sustain diamond output from the operation. More than 7,000 carats of diamonds were produced from the mine site in 2013, adds a report. Production from the new pipe is expected to commence in late 2018.

The company controls the said diamond mine with Dominion Diamond Corp. The Diavik JV is 60 per cent owned by Rio Tinto, with Dominion Diamond owning the remaining 40 per cent. Diavik’s diamond reserves are contained in solidified volcanic pipes of kimberlite, which the miner tunnels through the Earth’s crust to reach and extract the diamond ore. Currently, the mine is due to operate until 2023, adds a report.