Rio diamond fetches $2 million

Rio Tinto’s (ASX: RIO) Argyle diamond mine in Western Australia has produced a number of new records for the miner, including the sale of a 1.56 carat fancy red diamond worth $2 million at its annual tender.

The 64 red, pink and blue diamonds were bought by buyers from all around the globe. Rio’s diamonds managing director Jean-Marc Lieberherr said, “We are delighted with the results for the 2013 tender collection which are a reflection of their rarity, provenance and global reach.”

Demand for diamonds is expected to increase modestly in coming years thanks to a rising middle class, particularly throughout Asia. “Both established and emerging markets were well represented in the winning bids,” Rio said. All 64 diamonds sold above their estimated tender prices.

Despite the demand for diamonds, Rio’s plans to sell its business were scrapped after it failed to attract suitors. Rio’s diamond business posted $192 million in underlying earnings for the six months to June 30, 2013, thanks to higher prices, and the company’s $2.2 billion underground mine at Argyle is expected to produce up to 20 million carats per year and provide ongoing earnings until 2020.

Interested in our #1 dividend paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!