Rio Tinto Increases Cost $500 Million on Argyle Diamond Mine

SMH reported Rio Tinto (ASX:RIO,NYSE:RIO) has increased the budget by $500 million for its Argyle diamond mine with plans to move it underground.

As quoted in the market news:

Argyle diamond production for the year was down 24 percent from 2010 because of “heavy rains in the first quarter, lower ore grades and maintenance shut downs in the fourth quarter,” Rio reported yesterday.

Capital costs increased to US$2.1billion from the $1.6billion when an additional $500million was approved in December, Rio Tinto reported.

Click here to read the full SMH report.