RE: RE: RE: What a selloffRio Tinto, with an 18% share of the rough market from the Diavik (Canada), Argyle (Australia) and Murowa (Zimbabwe) mines, has told the market it is suspending diamond processing at Argyle for three months, and halting the move to underground production. Company spokesman Nick Cobban told Asia Times Online: "Rio Tinto has announced the slowing of capital projects at Argyle and Diavik in response to the global economic crisis. Production at Argyle will be reduced by a maintenance shutdown of the diamond processing plant for up to three months. The Argyle Underground Project has also been been slowed to encompass only critical development activities. At Diavik the commencement of the underground operation has been delayed until Q3, 2009.
"Rio Tinto's approach to sales is one of caution in light of market conditions and the need to be aware of the circumstances faced by our customers. Rio Tinto does not release details of inventory."