Rio scraps bid to sell diamonds DIAMONDS might just be forever for Rio Tinto, which has shelved plans to sell the niche division after failing to find a buyer following a year-long sales pitch. The decision to hang on to the $US1.3 billion ($1.4 billion) division complicates a push by the mining giant to sell off a host of assets. It comes after Rio tumbled into the red last year and as the miner works to retire a near $20 billion debt pile that threatens its credit rating with Standard & Poor's. Canada's Dominion Diamond Corporation, which recently bought BHP Billiton's diamond division for $US553 million, had being eyeing Rio's business but this month told investors it was not interested. Yesterday's decision also comes after Rio chief Sam Walsh said the miner's asset selldown was not "market day at the bazaar." Analysts said it was clear Rio had been unable to get the price it wanted amid a pall over the wider resources sector. "They could sell it but there's no point going overboard and selling it too quickly," one said. It's also worth more together than selling off bits of it. Rio has said it intends to sell about $US14 billion in diamond, iron ore, copper, coal and aluminium assets to help pay down its debt. The miner's diamonds chief, Alan Davies, said the decision to keep the division was in the best interests of shareholders. "After considering a number of alternative strategic ownership options it is clear the best path to generate maximum value for our shareholders is to retain these businesses," he said. Rio is the world's third-largest producer of rough diamonds with mines in Australia, Canada and Zimbabwe. The division, which accounts for less than 1.5 per cent of the miner's total revenue, recorded a $US43 million loss last year. Rio shares closed 2.1 per cent lower yesterday at $51.54.