Rio Tinto has announced that Jean-Marc Lieberherr will assume the position of Managing Director, Diamonds, on September 1, responsible for all aspects of the Rio Tinto Diamonds business. Most recently Lieberherr was Chief Commercial Officer for Rio Tinto Diamonds, having joined Rio Tinto Diamonds in 2005.

Lieberherr's appointment was made as part of a restructure, following Rio Tinto's June decision to retain its diamond business in its portfolio after concluding a strategic review that considered a range of options, including potential divestment. Included in the restructure was the consolidation of diamond mining operations under Kim Truter, who will be appointed Chief Operating Officer for the diamond business, reporting to Lieberherr. Truter currently holds the position of Managing Director of the Argyle diamond mine and was previously President of the Diavik diamond mine.

H1 Diamond Revenue up 15%

In other company news, Rio Tinto recorded a 15 percent increase in revenue from its diamond business of US$403 million for the first half of 2013. Earnings before interest, taxes, depreciation and amortization (EBITDA) were US$95 million compared to US$35 million in the same period a year ago. The miner's net earnings from diamonds totaled US$5 million, compared to a loss of US$24 million during the first half of 2012.

"Rough diamond prices rose in the first half of 2013. Demand for commercial quality goods remained steady but higher quality demand was slow. The near-term outlook points to a softening rough market with manufacturing margins under pressure from a weaker Indian rupee and tighter bank lending," says the integrated miner in its half-year earnings report.

As DIB previously reported last month, Rio Tinto's rough diamond output from its three mines increased 20 percent during the first half of 2013 to 7.370 million carats, mainly reflecting increased tonnes processed and higher grades at Argyle following the commissioning of the underground mine in April 2013. Additionally, Diavik has completed the transition to a fully underground mine, with all three pipes now at full production.