Diversified miner Rio Tinto has exercised its voting power to place the Star-Orion South diamond project, in Saskatchewan, Canada, on care-and-maintenance, its joint-venture (JV) partner said on Wednesday.
Star Diamond said that, subject to fulfilling its existing obligations, Rio Tinto would not commit additional capital to the project during 2022 beyond what was necessary for care-and-maintenance.
Rio Tinto also advised Star Diamond during Tuesday’s JV management committee meeting that it planned to conduct a near-term review of its alternatives regarding the project, including its potential exit.
“The board of directors of Star Diamond is disappointed by these decisions. Star Diamond intends to work with Rio Tinto in assessing alternatives regarding the project,” the Canadian junior said.
Star Diamond noted, however, that remained pleased with the results of the comprehensive studies and bulk sampling programme that had been completed to date at the project.