Argyle Underground Project - Ramps Up

Rio Tinto recently announced it will invest US $830 million to ramp-up the underground mine project at its Argyle Diamond mine site with the investment showing positive signs of confidence in the industry.

With increasing market demands, the Argyle Underground project is expected to commence full operational activities in 2013 – a move that will extend the life of the mine until at least 2019.

As a result of the impact of the Global Financial Crisis, the project was slowed down in 2009 , but with the recent announcement to ramp-up, construction is expected to be in full flight from early 2011.  

Located in the East Kimberly region of West Australia, the extraction level of the underground mine is located some 240m directly below the current Argyle open pit.  The project comprises some 35km of underground tunnelling, which provide access and ventilation into the mine: create excavations for ore-handling and pumping infrastructure; and establish undercut and extraction levels which both define the ore block and will facilitate caving and production activities. 

Rio Tinto Diamonds and Minerals chief executive Harry Kenyon-Slaney said the investment underlined the group’s “commitment to and confidence in the world diamond industry”.

 “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,” he said.

 “Argyle is well positioned to capture the new demand.”

With up to 600 construction jobs to be created as a result of the multi-million dollar investment, it’s a sure sign that the mining industry is well on its way to recovery from the global economic downturn.