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99% Drop In Diamond Production Forecast For Australia - GlobalData

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With Rio Tinto's Argyle Mine set to close, GlobalData forecast that rough diamond output from Australia will decline to just 137,000 carats from the current level of 14.2 million carats, a 99% drop.

In a study released today GlobalData analyst said diamond production in Australia will now rely on just one mine.

"The Western Australian government, which has conducted rehabilitation work at the Ellendale mine, is now seeking for a new operator to re-start mining activities," said Vinneth Bajaj, Senior Mining Analyst at GlobalData.

"However, with no immediate potential to replace even part of the output of the Argyle mine, the country’s production of rough diamonds will fall to less than 1% of the current levels from 2021, with all output solely from Merlin Diamonds Ltd’s Merlin mine, which achieved full production during the third quarter of 2018."

Bajaj said the shuttering of Argyle could spur diamond exploration in Australia, noting that Lucapa Diamond Company Ltd, Merlin Diamonds, Auteco Minerals, GeoCrystal and Legend International are all running exploration programs in Australia.

Earlier this month Rio Tinto announced one of its final lots of red and pink diamonds from Argyle, which has been operating for four decades.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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