Rival diamond miners can’t wait for Rio to stop the glut
Rio Tinto’s Argyle mine has flooded the market and suppressed prices for smaller, lower quality diamonds
The long-awaited closure of Rio Tinto’s Argyle diamond mine is nearing – and producers of lower quality diamonds anticipate improved prices for their stones once this happens.
Argyle in Western Australia is a major source of the world’s glut in smaller, lower quality rough diamonds, with more than three quarters of its output of about 14 million carats falling into this category.
Prices have largely stagnated for lower quality diamonds, which form the bulk of the production for nearly all diamond miners. Hence there is a collective anticipation of an uptick in prices once this major source has stopped...