Rio Tinto announced a closure agreement with the Tłı̨chǫ Government for its Diavik diamond mine in Behchokǫ̀, Canada, after signing the contract on February 26 2026. The agreement will bring commercial production to an end in March 2026 and formally ends operations at the mine, which has been the company’s sole remaining diamond asset since the Argyle mine closed in 2020.
Diavik has operated for 26 years and produced high‑grade diamonds, but the mine has been a financial drag. In 2025 the diamond division posted an underlying EBITDA loss of $79 million on revenue of $332 million, while production rose 61 % to 4.4 million carats. The A21 underground deposit is expected to be depleted by the end of the first quarter of 2026, and Rio Tinto plans to spend roughly $1 billion in 2026 on closure activities for Diavik and other projects.
The closure frees capital and operational focus for Rio Tinto’s future‑facing metals strategy. The company has reorganised into three core divisions—Iron Ore; Aluminium & Lithium; and Copper—and is investing heavily in these growth areas. It acquired Arcadium Lithium for $6.7 billion, aiming to reach 200,000 tonnes per year of lithium carbonate equivalent by 2028, and is ramping up copper production at the Oyu Tolgoi underground project, targeting 1 million tonnes per year by 2030.
CEO Simon Trott said the company is simplifying its portfolio, cutting costs, and divesting non‑core assets to improve capital allocation. He highlighted the importance of disciplined execution and a focus on high‑margin growth assets, underscoring the strategic shift away from legacy businesses such as diamonds.
The agreement also includes commitments to the Tłı̨chǫ community, providing funding for local initiatives, employment, training, and business opportunities. This reflects a broader industry trend toward responsible mine closures that support social and environmental stewardship.
By exiting the diamond sector, which has been underperforming, Rio Tinto can reallocate resources to high‑growth metals that underpin the energy transition. The move improves the company’s cost structure, strengthens its balance sheet, and positions it for long‑term growth in copper, aluminium, and lithium markets.
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