Rio Tinto is ramping up the underground block cave project at its Argyle diamond mine in Western Australia (IM, January 2009, pp8-14). Following a transition from the current open-pit operation, the underground will be fully operational in 2013. The project will extend the life of the mine until at least 2019. Construction activity will ramp up in the first half of 2011, with targeted production rates of 9 Mt/y forecast within two years. The funding will cover project development and construction of extraction services, crushers, a conveyer and pump stations at the mine in the Kimberley region of northwest WA.

Rio Tinto Diamonds and Minerals chief executive Harry Kenyon-Slaney said: “This investment in the Argyle underground underlines our commitment to, and confidence in, the world diamond industry. The project was slowed in 2009 due to the global financial crisis but the diamond market continues to recover and long-term industry fundamentals remain healthy.  A significant supply gap is expected to emerge in the medium to long term and the outlook for demand is strong, driven by the growth of emerging markets. Argyle is well positioned to capture the new demand.”

The extended mine life from the underground project will generate enduring benefits for the Kimberley region, building on Argyles significant contribution to economic development over the past quarter of a century.

With 70% of the workforce living locally, Argyle is one of the largest contributors to the East Kimberley economy. Indigenous Australians account for one in four members of the local workforce. The compaany says “the continued support of customers, the West Australian Government and the East Kimberley community has been important for the underground project.”