Recently, Rio Tinto confirmed that the $1.6-billion underground development work on its Argyle diamond mine has begun as per scheduled and the mine would begin production in mid-2009. This was following a news by Dow Jones Newswires which mentioned the same.

Some industry experts estimate that the company may place the Argyle mine for sale, considering the huge costs involved in its redevelopment. “We've certainly been hit by the spiralling costs in the mining industry,” said Alan Tietzel, a general manager at the mine, which is expected to close in 2018.

Rod Fraser, who is the mine's production manager, mentioned that within four years when open-pit operations cease, the mine would have a production capacity of 20 million carats from underground operations.