According to Internet Stones.com, diamond mining giant Rio Tinto will recommence expansion work at the Argyle diamond mine next year. The resumption of the diamond mine’s expansion plans comes in the wake of recovery in global jewelry demand.

Rio Tinto’s COO, Kevin McLeish, stated that underground production at Argyle, the world’s largest diamond mine, should start in 2013.

Diamond prices appear to rebounding after the slump in demand due to the global recession. In recent months, Russian diamond mining giant Alrosa, the De Beers diamond company and Rio Tinto have all resumed operations at their diamond mines and increased their production capacity. The jumpstarting of diamond production follows the growing demand for diamond jewelry in China and India as well as the anticipation of economic recovery in the Unites States.

McLeish stated: “Given the price and recovery forecast, we will see a significant improvement in the performance of the diamond group within Rio through 2010.”

The Argyle mine is currently functioning at full capacity. Its diamond production facilities were shut down from January to June 2009.