Posted in | News | Diamond

Rio Tinto Looks at Russian Diamond Partnership

The Rio Tinto Group is trying to set up a joint venture with Russian state owned diamond mining company Alrosa. The Australian listed mining giant seems keen on developing the large deposit near the north port of Archangel under the partnership. The deposit is estimated to have 128 million carats and is an attractive opportunity.

The fact that Rio Tinto is very interested in the project seems to be given weight by the frequent trips that chief executive officer Tom Albanese has taken to Russia in the last year, especially considering that Rio Tinto has no operations in Russia. . Although it is not officially confirmed by Rio Tinto officials who just declined to comment on the matter.

As per a report published in the United Kingdom they seem to be in negotiations with the largest Russian diamond mine operating firm. Alrosa was responsible for 25% of the world’s rough diamond supply last year. The increasing demand from China for diamonds seems to have been the main motivation behind Rio Tinto’s move.

Alrosa has expressed interest in a joint venture for the project as it needs to spend its own money on its other mines. Industry specialists however are not too sure why Rio Tinto would want to get into this operation as there have been no new discoveries in years. Plus the exploration return on capital in the diamond industry is not attractive at all.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Rio Tinto plc. (2019, March 19). Rio Tinto Looks at Russian Diamond Partnership. AZoMining. Retrieved on January 30, 2023 from https://www.azomining.com/News.aspx?newsID=3768.

  • MLA

    Rio Tinto plc. "Rio Tinto Looks at Russian Diamond Partnership". AZoMining. 30 January 2023. <https://www.azomining.com/News.aspx?newsID=3768>.

  • Chicago

    Rio Tinto plc. "Rio Tinto Looks at Russian Diamond Partnership". AZoMining. https://www.azomining.com/News.aspx?newsID=3768. (accessed January 30, 2023).

  • Harvard

    Rio Tinto plc. 2019. Rio Tinto Looks at Russian Diamond Partnership. AZoMining, viewed 30 January 2023, https://www.azomining.com/News.aspx?newsID=3768.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit