After a year of courting buyers and business reviews, Rio Tinto has decided to shelf the plan to sell off its diamond division.

There had been some interest from players in various industries over the last year, if successful the sale would have been worth billions of dollars to Rio Tinto.

The mining giant said it had been looking at a number of ownership options for the multi-billion dollar industry arm, the company had wanted to sever the limb after internal and shareholder concerns it was not bringing in enough revenue.

Rio Tinto Diamonds and Minerals chief executive Alan Davies maintains that the market fundamentals for diamonds remain robust, fuelled as ever by demand for luxury goods and industrial applications. Rio is one of the world’s most prolific diamond producers, counting Australia’s Argyle mine among its raft of assets.