The BHP Billiton board decided Tuesday that it “no longer believes” that the offer for Rio Tinto would be in the best interests of BHP Billiton shareholders. The miner cited dropping commodity prices and a European Commission demand for certain divestments.

BHP Billiton’s long chase for Rio Tinto ended due to falling commodity prices and EC limitations

It is not clear what affect, if any, this will have on the companies’ diamond mining position.
In its bid for Rio Tinto, BHP offered 3.4 of its shares for each Rio Tinto share. Rio Tinto has rejected the offer, saying it fails to recognize the underlying value of Rio Tinto’s quality assets and prospects.
While it the Australian Competition and Consumer Commission (ACCC) and the U.S. Department of Justice decided not object to the deal, the European Commission (EC) opened an in-depth investigation into the proposed acquisition. This developed into a key issue for BHP Billiton.

continue reading "BHP Billiton Backs Out of Rio Tinto Takeover"

Rio Tinto’s 24th annual Argyle Pink Diamond Tender, completed last week, showed a strong market for the precious stones despite the difficult economic conditions, the company reported.

“All the diamonds received a significant level of interest and competition in what can only be described as a difficult economic market,” said Raj Kandiah, general manager of Argyle Pink Diamonds. “Whilst the pink diamond market is not completely insulated from the current global economic crisis, our tender results point to a market that recognizes both the beauty and the ongoing value of this product.”

Rio hosted viewings of its Argyle collection in six centers starting in Perth on August 21, before moving through New York, London, Hong Kong, Tokyo and closing in Sydney in October.

The company did not disclose the names and number of successful bidders, or the sales value of the tender.

continue reading "Rio Tinto Reports Strong Market for Pink Diamonds as Argyle Tender Closes"

International mining group Rio Tinto reports that its total diamond production for the third quarter ended September 2008 has dropped by 10 percent to 6.1 million carats compared to the third quarter of 2007, which totaled 6.8 million carats.  However, Rio Tinto’s total diamond production for the third quarter of 2008 registered a 34 percent growth against the preceding quarter of 2008, when production totaled 4.6 million carats.

Diamond production at Rio Tinto’s wholly owned Argyle mine in Australia, which totaled 4.7 million carats in the third quarter of 2008, had a slight decline of four percent compared to the same quarter in 2007, but was 56 percent higher than the second quarter in 2008. This increase is attributed to the re-establishment of access to the high grade areas of the pit, which has resulted in improved feed grade and higher throughput, according to Rio Tinto’s third quarter 2008 operations review. “Variability in feed grades and production rates will continue as the open pit approaches the end of its life and the mine transitions to an underground operation,” says the company statement.

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Rio Tinto Diamonds NV has launched its 24^th annual Rio Tinto Argyle Pink Diamond Tender, which will continue throughout September and end in the beginning of October. The first of five international tenders took place in Perth, on August 21-22, and will be followed by tenders in New York (September 2-5, 2008); London (September 9-11, 2008); Hong Kong (September 15-20, 2008); Tokyo (September 24-26,2008); with a final sale in Sydney (October 1-2, 2008).

This exclusive diamond sale is limited to an estimated 100 of Rio Tinto Diamonds’ key clientele from around the world, who will personally view the diamonds in secret locations. The sale is said to feature “65 of the world’s rarest pink diamonds” from Rio Tinto’s wholly owned Arygle mine in Australia, which is the world’s main source of pink diamonds.

This year’s tender, according to Rio Tinto Diamonds, will include “for the first time in seven years, a captivating heart shaped pink diamond. There are also a number of highly sought after Purplish Reds, Intense and Vivid Pinks and three rare Violets…in total this collection showcases 62.46 carats of diamonds with 30 diamonds more than one carat in size.”

For the first time, Rio Tinto Diamonds has named on two of the sale’s most prestigious stones: “Aphrodite, a spectacular 1.01 carat round purplish red takes its name form the Greek Goddess of Love and Passion, whilst Ocean Seer, a 1.41 rare violet stone, symbolizes ancient wisdom and serenity.”

Bids are confidential and the names of successful bidders and the values achieved are not disclosed. The successful bidders will be notified personally in October

Source: www.diamondintelligence.com

Wal-Mart Stores, Inc. on Tuesday launched a new line of jewelry that will allow consumers to see online where their jewelry was mined and manufactured. The Love, Earth jewelry line will be available at Wal-Mart stores, Sam’s Club locations, and on Walmart.com and Samsclub.com. The line being sold at Wal-Mart will feature 10k gold and sterling silver, and the Sam’s Club line will include 14k gold and sterling silver. The collection is “designed to symbolize the Earth’s elements and based on the precepts of recycle, reduce, and respect,” the Bentonville-Ark.-based retailer said in a statement.

continue reading "Wal-Mart to Sell Traceable Jewelry"