Rio retains diamond businesses

Rio Tinto Ltd has opted to retain its diamond business following the conclusion of a strategic review which considered a range of options, including potential divestment.

Rio Tinto Ltd has opted to retain its diamond business following the conclusion of a strategic review which considered a range of options, including potential divestment.

In a statement to the Australian Securities Exchange, Rio Tinto said  the medium to long-term market fundamentals for diamonds remain robust, fuelled by growing demand for luxury goods in Asia and continuing strong demand in North America.

"We have valuable, high-quality diamonds businesses that are well positioned to capitalise on the positive market outlook," Rio Tinto diamonds and minerals chief executive Alan Davies said.

"After considering a number of alternative strategic ownership options it is clear the best path to generate maximum value for our shareholders is to retain these businesses."

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles