Rio Tinto has reported a $127 million loss from its Diavik diamond mine in Canada for 2024, citing weak market conditions and “fixed cost inefficiencies” as contributing factors.
This compares to underlying earnings of $26 million in 2023. The company’s diamond division generated $297 million in revenue, a 37 percent decrease from $444 million the previous year.
Workforce Reductions and Operational Changes
In September 2023, Rio Tinto offered voluntary separations to over 1,300 employees as part of cost-cutting measures ahead of the mine’s scheduled closure in 2025. The company has been adjusting its operations to manage expenses as production nears its end.
Production Decline
Diamond production at Diavik dropped by 17 per cent, falling from 3.3 million carats in 2023 to 2.7 million carats in 2024. The decline reflects broader market challenges, including pricing pressure and fluctuating demand.
Rio Tinto acquired full ownership of the Diavik mine in November 2021 after purchasing the remaining 40 per cent stake from Dominion Diamond Mines. As the mine nears closure, Rio Tinto and the wider diamond industry continue to navigate market uncertainty and shifting demand.
