Premium industrial metals & minerals company Rio Tinto plc RIO recently revealed its discovery of the largest diamond ever found in Canada. Despite the challenging sub-arctic environment of the country, the company managed to unearth the two-billion year old rare gem with its mining expertise, modern excavating technology and skilled workforce.
Found in the company’s Diavik Diamond Mine, the diamond weighs 187.7 carat and is named ‘The Diavik Foxfire’. Currently, the stone is showcased in the Kensington Palace of London.
The discovery of the rare diamond in Rio Tinto’s Diavik Mine, which is located 220 kilometers south of the Arctic Circle in the distant Northwest Territories of Canada, serves as proof of the company’s superior-quality mining services. The breakthrough development, we believe, also indicates the region’s massive mining potential, which in turn, will open up large employment opportunities for the native inhabitants.
Despite being an established mining company, Rio Tinto’s business has been severely affected by unfavorable pricing environment in recent times. At this juncture, news of such a discovery highlights the company’s advanced mining capabilities, thereby portraying its operational strength in the contemporary basic materials market. Operational from 2003, the company’s Diavik Diamond Mine produces almost 6–7 million carats of diamonds every year. Apart from unearthing diamonds for commercial usage, the mine also generates employment opportunities, and hence is regarded as a prominent contributor toward Canada’s northern economy.
Stocks to Consider
Rio Tinto currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Avalon Rare Metals Inc. AVL, Taseko Mines Ltd. TGB and Vedanta Limited VEDL. All three stocks carry a Zacks Rank #2 (Buy).
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