Mining giant RIO Tinto is nearing its decision on restarting development of the underground Argyle diamond mine in Australia, The Australian reported.

"We are hopeful of being able to start it but that depends on the approval of our investment committee. We are continuing to work on how and when the restart might take place," Rio Tinto executive Harry Kenyon-Slaney told the newspaper.

Rio Tinto started building an underground diamond mine at Argyle in 2006, but development stalled last year as the company faced heavy debt and crashing commodity prices.

The diamond market has certainly recovered from the global financial crisis, Kenyon-Slaney said, adding Rio Tinto has been encouraged by said recovery.

Rio Tinto is also said to be exploring for diamonds in India. The company should have results in a few months and then it would decide whether to proceed with a feasibility study to build the Bunder project.