Rio Tinto's refusal of the development of the diamond Bunder project in India is not a reason to change the long-term forecast for world production of rough diamonds, said "Interfax" representative of ALROSA, a leading world producer of these precious stones.
Rio Tinto, the third largest in terms of diamond production in the world after Alrosa and De Beers, has decided to close its Bunder project in India, local media reported, citing the statement of the corporation. The stated reason - the desire to reduce costs. In addition, Rio has faced resistance to environmental authorities, concerned about the threat of tiger range dispersal.
Bunder - one of the few "growth projects" world diamond production, along with the Canadian project Gahcho Kue (51% owned by De Beers), the potential of which - 6 million carats in 2020. Bunder reserves were estimated at 34.2 million carats, Rio was planning to enter the field in 2019.
Meanwhile, ALROSA in its long-term projections do not foresee putting into Bunder operation over the next 10 years, said the representative of ALROSA.
"ALROSA quickly tracks the current changes taking place in the activities of mining companies. Given the problems faced by the company Rio Tinto in the implementation Bunder project (in particular, licensing and environmental management issues), ALROSA has adopted a moderately conservative approach to assessing the impact of this project on the world production of rough diamonds, not suggesting putting into operation Bunder in the next 10 years ", - said the representative of miners.
"The expectations of the company confirmed the decision of Rio Tinto to withdraw from the project and its infrastructure, the closure of the end of 2016 Thus, the failure of the development of Rio Tinto Bunder project will not affect the forecast ALROSA on the supply of rough diamonds to the global market of production", - the source said "Interfax".
According to actualize in June forecast ALROSA, the world diamond production will grow annually by 2% from 2015 to 2025 - from 129 million to 156 million carats carats. World diamond production reached a peak in 2006 (176 million carats) and significantly corrected after the crisis of 2008 (120 million in 2009), when De Beers stopped and sold a number of fields and projects.
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