Murowa

Rio Tinto reported on operating performance for the Murowa diamond mine in Zimbabwe. The effects of power disruptions and lower feed head grades meant that Rio Tinto’s share of diamonds recovered decreased to 0.11 million carats from 0.19 million carats in 2006. Operating conditions in the country remained challenging with hyperinflation and commodity shortages.

Earnings of $2 million were $7 million below the corresponding period of 2005, attributable to an adverse sales mix, with the extraction of smaller stones as mining moves below the enriched surface layer.

The construction of small scale operations was completed and production commenced in the fourth quarter of 2004.