Mining giant Rio Tinto is considering selling its majority share of a diamond mine in northern Canada to the owner of the minority share in the mine, Mining.com reported. Canadian diamond miner and retailer Harry Winston, which currently owns 40% of the Diavik diamond mine in the Northwest Territories, is reportedly in talks with Rio Tinto to purchase its 60% share, which would make it the sole owner of the mine.
Rio Tinto is one of at least two companies that mine many different resources all over the globe that has publicly stated that it is seriously considering selling off its assets to other players in the diamond industry, chiefly because of declining profits from the sector. Rio Tinto earns approximately 2% of its revenue from its diamond mining activities, according to Mining.com.
The profit margins from Rio's other mining activities are much higher than its diamond earnings. Iron ore, for example, provides Rio with a 70% profit margin.