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Keith Johnson - Diamonds

Glittering prizes

At first sight, Rio Tinto's Diamonds business appears very different in kind from the Group's five other product groups. Responsible for mining and marketing tiny quantities of an ultra high value product destined almost exclusively for the luxury retail market, it's a world away from the industrial sector which is voracious for vast quantities of Rio Tinto's coal, iron ore, copper, aluminium and industrial minerals.

To give some idea of the difference in scale: Rio Tinto last year produced about 150 million tonnes of coal and 100 million tonnes of iron ore, whereas its total production of diamonds came to less than seven tonnes (33 million carats). Or, to make the point even more starkly: all the diamonds that have been, or ever will be, produced at the prolific Argyle mine in Australia could be comfortably fitted inside just one of the Copper business's 300-ton trucks.

But as Keith Johnson, 42, head of the Diamonds group, is quick to point out, the similarities and synergies that his group shares with the rest of Rio Tinto's mining activities far outweigh these apparent differences.

"In order to extract the handful of rough diamonds we sell every year, we have to shift huge quantities of rock," he explains. "At Argyle, for example, we'll move over 80 million tonnes this year. The same skills which are needed to mine copper or coal can just as easily be brought to bear in the diamond business. What's more, the disciplines and techniques which are applied when exploring for bulk deposits of, say, iron ore or bauxite are no less relevant when it comes to diamond exploration.



Keith Johnson - Diamonds Glittering prizes At first sight, Rio Tinto's Diamonds business appears very different in kind from the Group's five other product groups. Responsible for mining and marketing tiny quantities of an ultra high value product destined almost exclusively for the luxury retail market, it's a world away from the industrial sector which is voracious for vast quantities of Rio Tinto's coal, iron ore, copper, aluminium and industrial minerals. To give some idea of the difference in scale: Rio Tinto last year produced about 150 million tonnes of coal and 100 million tonnes of iron ore, whereas its total production of diamonds came to less than seven tonnes (33 million carats). Or, to make the point even more starkly: all the diamonds that have been, or ever will be, produced at the prolific Argyle mine in Australia could be comfortably fitted inside just one of the Copper business's 300-ton trucks. But as Keith Johnson, 42, head of the Diamonds group, is quick to point out, the similarities and synergies that his group shares with the rest of Rio Tinto's mining activities far outweigh these apparent differences. "In order to extract the handful of rough diamonds we sell every year, we have to shift huge quantities of rock," he explains. "At Argyle, for example, we'll move over 80 million tonnes this year. The same skills which are needed to mine copper or coal can just as easily be brought to bear in the diamond business. What's more, the disciplines and techniques which are applied when exploring for bulk deposits of, say, iron ore or bauxite are no less relevant when it comes to diamond exploration.
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Review is published by Rio Tinto, 6 St James' Square, London SW1Y 4LD, England Telephone +44 (0)20 7930 2399 Editor: Cherry DeGeer