Potential Impacts Of The Argyle Mine’s Closure
Why is the Argyle Mine so important?

The Argyle Mine in Western Australia is currently one of the most important producers of diamonds in existence. Not only is it the largest source of coloured diamonds in the world it is also responsible for over 90% of the world’s total pink diamond production. Since commencing mining operations in 1985, it has gone on to become the fourth largest diamond producer by volume worldwide. However, with resources running out and the cost of mining exploration increasing, Rio Tinto, the mine’s owners, have announced plans to cease all mining operations as soon as 2020.

Potential Repercussions

Currently there is no other mine in existence that can replace the level of output the Argyle Mine has achieved over the last few years. This means that when the mine eventually does close, it will significantly affect the supply of coloured diamonds. No other mine on earth can boast a tender like the famous annual Argyle tender and the quality of their investment grade pink, red and violet diamonds is unparalleled.

Whilst there are other mines currently producing coloured diamonds, the growing cost of mining exploration is making it difficult for them to increase their output. It is also highly unlikely that new mines will be discovered any time soon due to the increasing time and resources it costs to excavate.

What does this mean for Investors?

If you’re thinking about investing in coloured diamonds, then now is the ideal time to do it. There is a limited window of opportunity before the Argyle Mine closes and coloured diamonds will likely become increasingly scarce thereafter. The value of coloured diamonds as a whole has appreciated by over 100% in the last decade and is continue to rise year on year. This means that the potential for large scale returns on investment is very good indeed.

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