Published on 25th June 2013
Rio Tinto’s Chief Executive Officer, Sam Walsh, has abandoned plans to sell the group’s diamond business after failing to attract a buyer willing to offer the two-billion-dollar price tag. Walsh is now faced with finding an alternative route to improve returns to shareholders to cut the miner’s debts, according to The Telegraph’s Questor column. “Diamonds may sound precious but they represent little more than a modest business for a group more heavily involved in the dirty end of the mining business,” the column said. Rio accounts for about 10% of the diamond market and production from its three mines last year generated just over 1.0% of group revenue and earnings before interest, tax, depreciation and amortisation (EBITDA). “Walsh now has his work cut out to deliver the goods for shareholders. Hold.”