Mining giant Rio Tinto's gross sales revenue from its diamond operations in 2010 stood at $682 million, the company announced in its annual report, released last week. This represents significant growth over the $450 million in gross diamond sales realized in 2009.



The company produced 13,843,000 carats of diamonds in 2010, 1% less than the 14,026,000 produced in 2009.



Rio Tinto also reported progress on a number of diamond projects. The underground operation of the Diavik mine in Canada produced its first ore in March 2010.



After the remaining $803 million in funding for an underground extension to the Argyle mine in Western Australia - the source of 90% of the world's red and pink diamonds - was approved in September, work resumed on that project, and the underground mine at Argyle is expected to be fully operational in 2013, with an annual production target of 20 million carats per year.



In 2010, the company also launched prefeasibility studies began at the Bunder diamond project in India.