Argyle 2.0 looks like it’s not happening.
Rio Tinto Diamonds has no intention of reopening the celebrated diamond mine in western Australia, despite the current market mania for the small diamonds that the mine regularly produced, a company source tells JCK.
The possible reopening of Argyle is one of the intriguing industry rumors making the rounds lately, with market talk suggesting that the mining giant could be considering the prospect. However, this source says that “reopening Argyle is not on the table, and this will not change.”
A note on the Argyle website said: “We are committed to respectfully closing and rehabilitating the mine, and returning the land to its traditional custodians.”
The Argyle mine, which was known not just for cheap, small stones but also for producing an unusual amount of rare and expensive pinks, closed in 2020.
Small gems have been among the hottest segments of the industry in recent months, with supply scarce and demand strong. Reports say that they caused a hefty price increase at the recent De Beers sight. Long-term, analysts expect that segment of the market to remain hot, given tight supply and continued strong consumer demand for halo and pavé settings.
Rio Tinto now controls all of the Diavik mine in Canada’s Northwest Territories, following the bankruptcy filing of former 40% owner Dominion Diamond. It has also partnered with Star Diamond to possibly develop a new mine in Saskatchewan, Canada.
Top: A photo from one of the last days of the Argyle diamond mine, which closed in November 2020 (photo courtesy of Rio Tinto Diamonds).
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