The World’s Biggest Diamond Mine Is Closing
- Rio Tinto to close Argyle in 2020 after more than 35 years
- Site's closure seen boosting weak prices as supply contracts
Argyle pink diamonds at the Argyle Diamond Mine in the East Kimberly region of Western Australia on July 12.
Photographer: Carla Gottgens/BloombergThe world’s biggest diamond mine—famed more for the fistful of coveted pink and red gems it yields each year than being a major producer of lower-quality stones—is being shuttered by Rio Tinto Group after almost four decades. Rivals from Russia to Canada hope that can help turn around the beleaguered industry.
Rio’s Argyle mine in remote Western Australia has transformed the sector since 1983 when the operation began supplying gems for both ends of the market. RBC Capital Markets and Panmure Gordon are among brokers, banks and competitors forecasting the closure could kick-start prices that have waned since 2011, according to PolishedPrices.com, an industry data provider.