Alkane Inc (ALKN)

[Shaun Spelliscy]

Argyle Diamonds is the world's largest supplier of diamonds producing approximately 30 million carats each year from its operations in the East Kimberley region, in the remote north of Western Australia. The company's production accounts for approximately one-quarter of the world's natural diamond production.

The diamonds produced by Argyle are found in a range of colours including white, champagne and pink. Argyle is the world's primary source of rare pink diamonds, which have become the company's signature stone. The finest pink stones are retained by the company in Perth, where they are cut and polished in Argyle's own factory and sold by international tender.

Argyle commenced mining its main ore body in 1985, and has since produced more than 500 million carats of diamonds, ranging from gem quality to near gem and industrial diamonds.

Argyle operates an open pit mine to recover diamonds from the AK1 lamproite pipe. In addition, alluvial mining has been an important part of Argyle's operations. Commencing in 1983 the alluvial operations involve the mining of ancient creek beds where diamonds have been washed down over millions of years. The life of the Argyle open pit operation presently extends to 2007. The AK1 pipe continues at depth, and for this reason feasibility studies are underway into underground mining options. This could add another decade or more to the mine's life.

The Argyle Diamond mine is characterised by a high level of efficiency, safety and productivity, coupled with a commitment to quality management, a skilled workforce and state-of-the-art technology.

The diamonds recovered at the mine are sorted at Argyle's Perth office where they are prepared for international sale by Rio Tinto Diamonds as an agent for Argyle Diamonds in Antwerp, Belgium. The majority of customers for Argyle product are based in India where a Rio Tinto Diamonds representative office is located in Mumbai.

The Argyle Diamond Mines Joint Venture (ADMJV) was established in 1982 to own and finance the Argyle mine. The development and operation of the mine is governed by a State Agreement between the State and the ADMJV, which was validated by the Diamond (Argyle Diamond Mines Joint Venture) Agreement Act 1981, as amended. Argyle Diamonds is 100% owned and managed by Rio Tinto Limited.

Argyle is committed to a number of key priorities that are essential to the success of its mining operations. These include the safety of all employees, the preservation of the environment and the development of strong and enduring relationships with local communities.

Argyle contributes significantly to Western Australia's economy through the creation of hundreds of jobs and the generation of millions of dollars in exports. In addition in 2000, the ADMJV contributed A$88 million in royalties to the Western Australian Government and A$121 million in income tax to the Federal Government.

http://www.argylediamonds.com.au/homepage.asp