Rio Tinto Looks To Get Into Russian Diamond Biz

Rio Tinto RIO, the world's second-largest mining company, is looking to boost its exposure to the Russian diamond market through a partnership with Alrosa, the state-run diamond miner. Demand for the precious gems is seen rising from emerging markets, particularly China.

Diamond market experts say Rio is believed to be a finalist to form a venture with Alrosa to develop a large deposit near the northern port of Archangel, according to the Financial Times. Rio currently doesn't do business in Russia.

Rio has been mining for diamonds for nearly four decades and has diamond mines in Canada, Australia and Zimbabwe and support offices in Belgium and India, according to the company's Web site. The company produced 13.8 million carats last year, well below the 34.3 million produced by Alrosa, the FT reported.

BHP Billiton BHP is the world's largest mining company.