Miner Rio Tinto PLC said Tuesday it has launched a review of its diamond operations and might sell its mines, including one in Canada that is 300 kilometres northeast of Yellowknife.
"We have a valuable, high-quality diamonds business, but given its scale we are reviewing whether we can create more value through a different ownership structure," said Rio Tinto CEO Harry Kenyon-Slaney, in an interview with Canadian Press.
BHP Billiton Ltd. (NYSE: BHP, Stock Forum), late last year, announced that it was selling its stake in two Canadian diamond mines (for further insight into that story please read the article by Stockhouse reporter Peter Kennedy).
Harry Winston Diamond (TSX: T.HW, Stock Forum) has a 40% stake in the Diavik mine in the Northwest Territories, partnering with Rio Tinto. Harry Winston has been rumoured to potentially lead a buyout of BHP’s 80% interest in the EKATI Diamond Mine.
Shares of Harry Winston fell 2% to $15.26 in early Tuesday trading.