Deals
Rio CEO Wants to Expand in Diamond Mines Rather Than Divest
- Jacques says expanding the diamonds division is a priority
- Only way to expand in diamonds is to acquire, Bernstein says
Why Rio Tinto Wants to Expand in Diamonds
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When Rio Tinto Group chief Jean-Sebastien Jacques took the reins of the world’s second-biggest mining company in July, there was speculation he’d sell a host of less desirable mines and smelters.
The firm’s diamond business, underpinned by two underground mines, was considered by some analysts as a candidate to be divested or spun out, particularly after it was combined with the copper unit. In a Bloomberg Television interview Tuesday, Chief Executive Officer Jacques earmarked the division as a focus for expansion rather than disposal.