In a presentation for investors at its Diavik diamond operation in Canada, diamond mining giant Rio Tinto stated that leading indicators for the diamond industry are now moving in a positive direction. The diamond miner noted that consumer confidence is rising and the price of polished diamonds has stopped declining.

The company noted that diamond sales and supply levels have risen and they are expected to continue growing in the second half of the year.

Rio Tinto stated: "Primary rough diamond sales have improved significantly in the second quarter and third quarter of 2009 and supply volumes into the market are moving back towards pre-crisis levels. In the long term, diamond demand is set to exceed supply.”

The company is moving to underground diamond mining at Diavik and expects the first ore production from the underground operations to begin early in 2010.

Rio stated that diamond production for the year to date has exceeded expectations at the Diavik diamond mine.