Gem

Talk

Issue 15November 2012

A newsletter for Rio Tinto DiamondsSales and Marketing

Welcome

GemTalk November 201202

Welcome to the final edition of GemTalk for this year.

I am delighted to show you the inaugural collection from the Bunder project in India, Courageous Spirit. As you will see from the images enclosed, this is a magnificent first offering from our developing mine, and a very promising indication of the end-products this world-class mine will deliver. This, of course, is in addition to the many new social and economic opportunities that the Bunder project is already delivering to the Madhya Pradesh region.

These are exciting times, too, for our established mines, which continue to demonstrate best practice across a range of their activities. The Diavik Diamond Mine has again been recognised as a top employer in Canada, while staff at the Argyle Diamond Mine in Western Australia are gearing themselves up to operate one of the most technically advanced mines in the world. I am also pleased to report that the Murowa Diamond Mine in Zimbabwe has achieved a new production record, while managing to deliver an excellent safety result.

On the marketing front, we continue to forge new ground. Our creative promotional efforts in India, for example, are building strong industry and retail interest in our Nazraana campaign – which is reinvigorating Indian gift-giving traditions – while our Shades of Wonder initiative is piloting a new approach to the marketing of Argyle coloured diamonds in the US. Meanwhile, Argyle’s most recent Pink Tender again demonstrated the remarkable market position this iconic event has created for these rare and incredible pink diamonds.

I would like to take the opportunity to thank you for your continued support and fantastic input throughout the year, a year that has certainly been very unsettling. I wish you and your families a very happy and safe festive season.

Jean-Marc LieberherrChief Commercial OfficerRio Tinto Diamonds

03GemTalk November 2012

With the Argyle underground mine set to become the first block cave mine in Western Australia, and one of the most technically advanced mines in the world, Argyle underground operators are preparing in the best possible way.

In September, 20 Argyle underground trainees became the first group to undergo tailor made training programmes in the A$13 million state-of-the-art facility in Parkes, NSW, the world’s first training centre dedicated to the block caving mining technique.

Facilities at the centre include an immersion theatre that allows geotechnical data to be displayed in a 3D 360 degree simulation and an underground simulator room.According to Kim Truter, managing director of the Argyle Diamond Mine,

“The Argyle underground block cave offers exciting opportunities to participate in leading edge mining practices and I am delighted to see our trainees have progressed so well through the program.”

Argyle operators at the frontiers of technology

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A new chapter in India’s diamond history unveiledThe inaugural jewellery collection from the Bunder diamond project in India was unveiled in Mumbai in August, providing a tantalising glimpse of the potential of this world-class deposit.

International jewellery designer Reena Ahluwalia, who grew up in the Madhya Pradesh region where the mine is located, was commissioned to produce the Courageous Spirit collection, which pays tribute to the pioneering spirit of the women of this traditionally poor and under resourced area of central India.

Incorporating diamonds sampled to date at the Bunder project, the collection comprises a magnificent statement necklace and set of complementary earrings. The focus of the necklace is a diamond-encrusted disc that symbolises the natural abundance of the Bunder diamond deposit. Inspired by a compass, the disc rotates on a central axis, with the latitude and longitude coordinates of the Bunder deposit inscribed on its reverse side.

Managing Director of Rio Tinto India, Dr Nik Senapati, said the jewellery collection represented an important moment in Indian diamond history, as it had been at least a century since India had mined, designed and manufactured its own diamond jewellery.

“This collection is symbolic of an important new chapter in India’s proud diamond history,” he said. As well as being mined in India, and magnificently interpreted by a native of Madhya Pradesh, the diamonds in this collection have been transformed by master craftsmen in Indian cutting and polishing factories and manufactured by a Mumbai based company with a reputation for exquisite craftsmanship.

The Bunder project presents enormous opportunities for both the Madhya Pradesh region and the broader Indian diamond industry.

The Chief Minister of Madhya Pradesh, Shivraj Singh Chauhan, was the guest of honour at the unveiling event.

The Courageous Spirit collection incorporates a total of 25.34 carats of polished Bunder diamonds and 2.8 carats of rough Bunder diamonds, including a 5.04 carat round brilliant cut white diamond and a 5.02 carat round brilliant cut cognac diamond.

05GemTalk November 2012

Shades of Wonder add sparkle to the USThe natural colour of Australia’s Argyle diamonds will be the selling point of a new marketing initiative – Shades of Wonder – involving the largest specialist retail jeweller in the United States, Sterling Jewelers.

In an industry first, a ‘chain of warranty’ pilot program will fully track the Argyle product from mine to retailer, leveraging the unique provenance of the rare and distinctive coloured gems. A robust audit framework has been applied to all those cooperating in the program, including Rio Tinto Select Diamantaires, participating jewellery manufacturers, as well as the US jewellery giant Sterling.

Sterling has more than 1,300 stores in 50 states in the US, including the nationally recognised Kay Jewelers and Jared the Galleria of Jewelry. The Shades of Wonder initiative will be rolled out to all locations, supported by fully integrated in-store training programs. National advertising rotations will be supported by a full-page promotion in the Kay Jeweler holiday catalogue, due to be released in November.

Shades of Wonder will feature rare and beautiful natural colour diamonds from Australia, featuring the tag line “…as unique as the landscape itself.” It is projected to use more than 16,000 carats of Argyle diamonds in 2013.

Rio Tinto Diamonds recent ‘Specials’ tender showcasing the largest diamonds from each of its mines, attracted strong bidding and global participation, including Rio Tinto’s Select Diamantaires, who were among the 29 successful companies.

The October Specials tender showcased 94 parcels of diamonds, including 26 diamonds greater than 20 carats. The most expensive diamond, Diavik Selene, an extraordinary white gem weighing more than 22 carats, was sold to specialist Israeli diamond company, Eshed Diam. A 35.41 carat fancy yellow coloured diamond was among the many large valuable diamonds from Murowa. Indeed all three mines contributed beautiful yellow diamonds to the Tender collection, including Argyle with a stunning 15 carat Vivid Yellow diamond.

According to Patrick Coppens, General Manager of Sales for Rio Tinto Diamonds,

“This is the result of a great team effort in Antwerp, with contributions from many departments to make this sale happen. The strong participation and results of this Specials tender, as well as the recently concluded Argyle Pink Diamonds Tender, demonstrates the consistent demand and competition for rare and valuable diamonds.”

‘Specials’ tender showcases diversity of productions

GemTalk November 201206

MurowadeliversmilestoneachievementThe team at Murowa has cause for celebration as it enters the festive season with a great third quarter result.Thanks to a combined effort, Murowa achieved a new record production of 121,000 carats, as well as recording zero lost time injuries for the quarter.

According to Murowa Diamonds managing director, Zebra Kasete:

“This was a classical team effort! The most important part of this success is the fact that we achieved this accomplishment without injury.”

Murowa recorded over one million man-hours and zero injuries for the quarter which, according to Zebra, was a major milestone and is reflective of Murowa’s strong commitment to Zero Harm.

“This is the second time in Murowa’s history that we have posted such a record and proves that Zero Harm is indeed possible through good systems, leadership, dedicated efforts and the right attitude.”

The National Social Security Authority (NSSA) recently awarded Murowa with a silver and bronze award in the OSH Frequency and Severity Competition.

Sowing the seeds for Bunder’s future workforce On the 6th November, hundreds of children from the villages surrounding the Bunder project in Madhya Pradesh gathered for the third annual Children’s Day Festival.

The one day festival, sponsored by Rio Tinto, aims to engage the whole community by providing a wide range of fun activities including dance performances, art and sporting competitions. According to Santosh Pathak, Community Relations Adviser for the Bunder project in India,

“It is a great event that is growing in popularity and is a fun platform which allows us to connect with our future workforce.”

Kensington Palace turns pink for a dayIn honour of the Queen’s Diamond Jubilee Year, Argyle Pink Diamonds brought together the world’s rarest and exquisite pink diamond jewellery for a once-in-a-lifetime exhibition, held at Kensington Palace, London, on October 9.

Titled “Out of the Vault: Pink Diamonds and Royalty” the exhibition was inspired by Her Majesty’s love of pink diamonds and ‘The Williamson Pink’ diamond brooch Cartier famously gifted to the Queen in the year of her coronation.

Demonstrating the incredible global reach of Argyle pink diamonds at the luxury retail level, twelve of the finest jewellers in the world showcased 42 pink diamond jewels worth more than US$65 million. Making up the rare collection were pink diamond encrusted rings, necklaces, brooches, bracelets, earrings and even a statue.

The softly lit pink walls of the Kensington Palace Orangery made an elegant backdrop for the press lunch and following that, an exclusive evening gala hosted by Rio Tinto’s Chief executive, Tom Albanese and world renowned jewellery historian, Vivienne Becker. Tom paid tribute to the history of the Argyle Diamond Mine, from discovery in the late 1970’s to the internationally distinguished brand it has become today.

Vivienne Becker commented on the remarkable rarity of Argyle pink diamonds:

07GemTalk November 2012

“Over the past 25 years the diamond industry has come to understand and appreciate the momentous nature of the Argyle diamond mine discovery, the compelling and mysterious beauty of the Argyle pink diamond and its place in the story of jewellery.”

Diavik takes out top accolade...again

GemTalk November 201208

Diavik has been selected as one of Canada’s Top 100 Employer for the second consecutive year, an accolade that reflects Diavik’s desire to remain an employer of choice.

Over 15,000 Canadian companies were invited to apply for the award and were judged in areas such as physical workplace, employee benefits, employee communications, training and development, performance management and community involvement.

According to Diamond Mines Inc. President and Chief Operating Officer, Niels Kristensen, Diavik’s commitment to employees was a major contributor to the great result.

“Diavik has accomplished so much in its relatively short history, from significant engineering feats through to accolades for its commitment to sustainable development. None of this would have occurred without the team at Diavik being focussed on the health, safety and welfare of all employees”.

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Since successfully launching its ‘Nazraana’ campaign last year, Rio Tinto Diamonds (RTD) has continued to build a strong profile for its flagship marketing initiative in India, creating a memorable presence at important trade shows and events, among other promotional activities.

At the India International Jewellery Week events held in Mumbai in August, for example, leading Bollywood actress Sonam Kapoor lent glamour to the official opening of the ‘Nazraana Lounge’ – a luxurious exhibition space evoking the royal traditions of gift-giving on which the Nazraana initiative is based.

As well as viewing the Nazraana collections, visitors to the Nazraana Lounge were invited to see how jewellery is made, have their portrait sketched by an artist (along with their favourite Nazraana design) and enter an online competition to take home a select item of Nazraana jewellery, based on their description of their emotional response to the piece.

The same week in Mumbai, RTD sponsored the prestigious Retail Jeweller India Award, taking opportunity to introduce its India Design Excellence Awards (IDEA) initiative, which invites young designers to showcase their talent and innovation through their own interpretations of Nazraana jewellery.

Designers from 55 design institutes submitted more than 1,200 designs for the contest, with six finalists receiving a cash prize and the opportunity to have their designs included in forthcoming Nazraana collections.

Given the positive retail reaction to Nazraana – the collection is available throughout India in more than 140 independent jewellery stores – RTD also undertook some serious promotional activity in Kolkata (Calcutta), the commercial and cultural centre of East India, just prior to the Bengali festival of Durga Puja in October. The widely celebrated Hindu festival is marked by up to five days of public holidays.

In the lead-up to the traditional Puja sales period, six leading retailers of Bengal representing 30 stores

participated in a special Puja promotion. The promotion was announced at a Nazraana press launch and themed fashion show.

Nazraana struts its stuff in India

GemTalk November 2012

Leading Bollywood actress Sonam Kapoor lent glamour to the official opening of the ‘Nazraana Lounge’ – a luxurious exhibition space evoking the royal traditions of gift-giving on which the Nazraana initiative is based.

World renowned photographer Anthony Horth has been on a five year journey to every continent, in search of the most inspiring and beautiful landscapes for his upcoming exhibition to be held in 2014 at the Palazzo Ducale in Venice, Italy. This journey led him to the Argyle Diamond lease area in Western Australia.

It was Anthony’s passion for pink diamonds that inspired the theme of his forthcoming exhibition, ‘Love of Mother Earth’, and Anthony is planning to showcase Argyle pink diamonds through a magnificent display of photographs of the hauntingly beautiful landscape that is home to the Argyle Diamond Mine. “Pink being the colour of love, coupled with the Argyle pink diamonds, inspired me to think that the core of mother earth could produce more love from this concentrated point than most places on the planet,” said Anthony.

Anthony and his wife travelled to the remote Argyle Diamonds lease for a two day photo shoot, where he was treated to a remarkable personal tour of the land and its significance by Traditional Owner, Ted Hall. Ted and his family shared their enchanting Dreamtime stories and gave Anthony an experience he will never forget.

“It was so beautiful seeing it through their eyes and their stories. The Dreamtime stories will be the narrative behind every image in the exhibition”.

Anthony was so enamoured with the story of Rio Tinto and its diamonds that his next stop after Argyle was Mumbai, to photograph the Courageous Spirit jewellery from the Bunder Project, for a Marie Claire India fashion shoot.

Argyle’s earthly treasures inspire photography exhibition

GemTalk November 201210

Siren call for Pink Tender

An exclusive event hosted by Argyle Pink Diamonds and Dom Pérignon was held to showcase the Tender collection alongside an Imperial Jade and Argyle Pink Diamonds necklace. 11GemTalk November 2012

The 2012 Argyle Pink Diamonds Tender was a resounding success, proving yet again the remarkable reach of Argyle pink diamonds on the international market. Across the globe bidders demonstrated a strong appetite the Tender, which this year comprised 56 single pink diamonds, two red diamonds and 19 “Once in a blue moon” blue diamonds.

The most valuable diamond of the Tender was Argyle Siren™, a 1.32 carat square radiant cut, Fancy Vivid Purplish Pink diamond, who captured the heart of jewellery designer, manufacturer and retailer, John Glajz.

Josephine Johnson, manager for Argyle Pink Diamonds, believes that Argyle pink diamonds have reached a tipping point regarding price, demand and global awareness,

“This year was marked by unprecedented demand from all corners of the globe. We were also surprised by the wave of disappointment from bidders who missed out on winning a diamond.”

This year’s Tender began with viewings in Perth, and subsequently travelled to Hong Kong to coincide with the Hong Kong Jewellery and Gem Fair. Adding to the excitement in Hong Kong, an exclusive event hosted by Argyle Pink Diamonds and Dom Pérignon was held to showcase the Tender collection alongside an Imperial Jade and Argyle Pink Diamonds necklace, ‘The Argyle Empress’.

The necklace, worth US$5.5 million later travelled to London for display at the ‘Out of the Vault: Pink Diamonds and Royalty exhibition’.

GemTalk November 201212

Keen to encourage innovation as a driver of growth in the diamond jewellery industry, particularly in the fast growing Chinese market, Rio Tinto Diamonds was headline sponsor for the inaugural Jewellery News Asia Awards (JNA Awards) held in September in Hong Kong.

The inaugural awards night honoured companies and individuals for their outstanding contributions to the jewellery industry in areas such as sustainable practices, manufacturing excellence, retail excellence and industry innovation. It was very well attended by all sectors of the diamond industry highlighting the importance of the China, which has the potential to be the largest market for diamonds in the world within the next decade.

Rio Tinto Diamonds presented one of the nine awards- ‘Brand of the Year’, and also took the opportunity to confirm its ongoing sponsorship for the JNA Awards in 2013.

According to Letitia Chow, founder of Jewellery News Asia and Director of Business Development- Jewellery Group at UBM Asia,

Rio Tinto headlines inaugural JNA Awards

New exploration focus for diamondsIn September a number of changes were announced that will see the diamonds exploration programme transferred to Rio Tinto Diamonds as of 1st January 2013.

Rio Tinto Diamonds is in the process of establishing a new operating model for its exploration programme. In the meantime changes are occurring such as:

• Three regional exploration projects have been approved in India, North America, and the Democratic Republic of Congo; and

• The Belmont laboratory in Perth, Western Australia will be closed reflecting the focus of the exploration programme on emerging projects in other regions.

Until a global exploration leader is recruited, responsibility for the Thunder Bay (Canada) diamond laboratory will be transferred to Diavik under Jon Brennan, along with support for the exploration projects and project execution. Operation of the diamonds laboratory based in Bangalore (India), together with support for the exploration projects and project execution will be transferred to the Bunder project under Tarun Malkani.

The global exploration leader will take responsibility for project generation and execution whilst Diavik and Bunder will continue to provide full support to all exploration activities.

Rio Tinto’s expertise and experience in diamonds exploration has delivered each of Rio Tinto’s operating mines and its Bunder project and according to Phil Plaisted, Global Head of Technology and Innovation, “These changes are a reflection of the evolution of our diamonds exploration activities and the increased emphasis on regions of greatest prospectivity.”

“These changes are a reflection of the evolution of our diamonds exploration activities and the increased emphasis on regions of greatest prospectivity.”

“Rio Tinto’s support for this event is extremely important. As a leading supplier of diamonds they play an important role in promoting best practices in our industry. We are delighted to continue our partnership with Rio Tinto Diamonds.”

Marc Van Den Bosch says he will instil a strong team ethic as he takes the reigns as Rio Tinto Diamond’s External Project Manager, based in Antwerp.

Joining Rio Tinto Diamonds last month, Marc has hit the ground running, excited at the opportunity of discovering a new industry and helping his team to support and equip them to ensure success. According to Marc,

“Delivering a project is a team sport and as project manager I’m acting as the coach and captain of the team, bringing my experience and knowledge to the table to ensure that we have a good game plan.”

Marc comes from a technical and engineering background and has had over 25 years experience working for many international organisations in the areas of project delivery, operation management and information technology.

A true horse lover, Marc and his family live on a renovated farm around 40kms from Antwerp, where they keep and breed their own horses.

Contact information

Sylvia Clark sylvia.clark@riotinto.com

Katja Van Der Hallen Katja.van.der.hallen@riotinto.com

Rio Tinto Diamonds NVDiamond Exchange BuildingHoveniersstraat 532018 Antwerpen, BelgiumTelephone: (32 3) 303 6800Facsimile: (32 3) 303 6900Website: www.riotintodiamonds.com www.selectdiamantaire.comEmail: rtd.info@riotinto.com rtd.salesenquiries@riotinto.com

We welcome your feedback!

We are keen for ideas about how we can improve the newsletter and welcome your contribution of photos and stories of interest for future issues. Please contact Sylvia or Katja with your comments and suggestions.

Farewells and

Welcom

es

Rio Tinto Diamonds farewells:Catherine Van Passel Manager Finance and ProcurementFrank Pieters Surveillance CoordinatorKris Remels Senior Advisor MarketingRoald Denissen Business AnalystSimon Garey Technical Improvement Coordinator

Rio Tinto Diamonds welcomes:Kim Stevens SorterNick Woods SorterLeen Brems Senior Analyst Marketing IntelligenceMatt Plichta Senior Advisor, Continuous Business ImprovementTibby De Volder SorterStephanie Verlinden Diamond Administration OfficerAnnemie Van Der Linden Sorter

New borns:Samuel Ferdinand Son of Matt and Nicol Plichta07/09/2012,

Argyle Pinks team farewells:Sharon Dyson Executive AssistantPhilippa Mackinlay Manager Business Support

Argyle Pinks team welcomes:Richard Visenjoux Diamond Polisher

Marc’s new game plan all mapped out