Rio records increased turnover from Murowa mine

EARNINGS from the Rio Tinto Group's 78 percent owned Murowa mine in Zimbabwe totaled US$3 million compared with "break even" in the first half of 2007, attributable to higher volumes, according to figures from the first half of 2008, ending June 30, 2008.

"Overall demand for rough diamonds in the first half of 2008 has been strong as demand from emerging markets has balanced declining demand from the US market," says the company.

"The demand picture, however, has been divided. Demand for better quality goods has been very strong while demand for lower quality goods has remained weak," the company says.

The diversified miner’s production totalled 7.853 of million carats of diamonds, a 31 percent decrease from the 11.446 million carats mined in same period in 2007.

Despite lower production volume, higher rough prices attributed to the Group's gross sales revenues from diamonds reaching US$571 million for the first half of the year, up from US$445 million in 2007. Net earnings were also on the rise at US$108 million, an increase from US$90 million in the first half of 2007. EBITDA totaled US$239 million for the first half of 2008.

The Group's net earnings for the first half of 2008 totaled US$6.914 billion, a 113 percent increase from the same period last year.