free daily newsletter
View all innovation growth

Rio Tinto rethinks diamond business

Global mining giant Rio Tinto (ASX:RIO) has announced the completion of its $6.65 billion share buy-back program as it considers selling its diamond businesses.

More than 116,000,000 shares were purchased at an average price of $56.80 in the buy-back.

“At March 26, 2012, Rio Tinto held 14,567,573 shares in treasury and 1,410,807,893 shares were in public hands,” the company says.

Also today, Rio Tinto announced a review of its diamond businesses that could include selling all or part of them.

Rio Tinto operates the Argyle diamond mine in Australia (100% interest), Diavik in Canada (60% interest) and Murowa in Zimbabwe (78% interest), and has an 100% interest in the Bunder advanced diamonds project in India.

Harry Kenyon-Slaney, chief executive the company’s diamonds and minerals business, says the outlook for the diamonds market is positive, with demand growing and a lack of new discoveries limiting supply.

“We have a valuable, high-quality diamonds business, but given its scale we are reviewing whether we can create more value through a different ownership structure. This process may take some time,” Kenyon-Slaney say.

Rio Tinto (ASX:RIO) was up 0.35% today to $63.97 and is listed on the Australian, New York and London stock exchanges.

Follow SmartCompany on Facebook, LinkedIn and Twitter.

Free Daily Newsletter
Invalid Input

Some know me as the
Business Bitch. Others just call
me Aunty B. I'm Smartcompany's
resident Agony Aunt.

t @IamAuntyB #AuntyB

Or you can email:


Want more helpful advice from Aunty B?

Read more now