Rio Tinto has reported a substantial reduction in diamond output for the third quarter of 2024, primarily due to operational challenges at its Diavik mine in Canada.
A subsidence event in July caused disruptions in underground ore deliveries, resulting in a marked decrease in production levels.
Third Quarter and Year-to-Date Production Declines
The Diavik mine, one of Rio Tinto’s key diamond production sites, saw a 28% drop in rough diamond production in Q3 2024, yielding 542,000 carats compared to the same period in 2023. The company’s year-to-date figures also reflect a significant decrease, with total output standing at 1.98 million carats in the first nine months of 2024, a 26% reduction from the 2.68 million carats produced during the same timeframe in the previous year.
The company has outlined plans aimed at addressing these setbacks in the long term.
A21 Underground Project and Future Outlook
Despite the current decline, Rio Tinto remains optimistic about future production levels. The company has successfully completed Phase 1 of the A21 underground project at Diavik, which has now entered commercial production. This development is intended to help offset recent production losses and contribute to future supply, with plans to fully mine the A21 underground site before its scheduled closure in 2026.
A sustained reduction in production may impact the availability of certain types of diamonds from this source, which could have implications for jewellers dependent on a steady supply of rough diamonds.