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Rio Tinto's Argyle diamond mine in the state's far north.

China dangles carats in front of Rio

Widely interpreted as a sign that no-one was interested in the world’s biggest source of low-quality diamonds and the occasional high-priced pink gem, the reason behind Rio Tinto’s decision to keep its Argyle diamond mine could be that a glut of diamonds on the world market is about to become a shortage.

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