JOHANNESBURG - Rio Tinto said this past weekend that diamond production at its Zimbabwe-based mine, Murowa, had declined by 33 per cent to 37 000 carats during the last quarter of 2009. (Pictured: Diamond production at Murowa has declined by 33 per cent)
In the space of a year, Rio Tintos diamond production fell by a similar percentage to 14.026 million carats. The decline came as the company reduced operating levels at its Diavik mine in Canada in response to weak market conditions. While Rio Tinto ramped up output at its flagship Argyle operation on the back of the recovery experienced during the quarter, the company noted that the markets remained below last year’s levels. Production at its Australia-based Argyle mine fell 33 per cent to 3.504 million carats and at Diavik, which the company holds a 60 per cent share in, output dropped 41 per cent to 918 000 carats.
Rio Tinto owns 77.8-per cent of its Zimbabwe operation, Murowa. Murowwa was not spared the economic and political crisis that bedevilled Zimbabwe over the last decade. During the setbacks, some companies closed down and thousands of jobs lost. The prospects of the sector have changed for the better following the formation of a unity government in 2008.