Argyle Mine Next Headache for Troubled Industry?

Argyle Diamonds logoPerth: In an opinion piece, Business News (West Australia) industry specialist Tim Treadgold says Rio Tinto’s Argyle mine hasn’t been profitable for the past 5 to 6 years, citing a royalties report by the Australian government released in June. With global diamond demand and prices plunging, that situation is hardly likely to improve, Treadgold says.

In addition, the author questions whether Rio Tinto’s investment of over 2 billion to go underground, despite the advice of former owner De Beers against it, was a smart move. After the failed Ellendale mine, the Argyle case is another blow to the once vibrant diamond industry in the region, Treadgold concludes; “Diamonds are forever, but not necessarily for West Australia”.