Rio retains diamond businesses
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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."
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