Global mining giant Rio Tinto has terminated plans to sell its diamond business, which was proposed as a part of $13bn strategic divestment of non-core and underperforming assets.

In an interview with The Telegraph, Rio Tinto chief executive Sam Walsh confirmed that the company would not go ahead with the sale, claiming that it is focusing on cost-cut at its other business units.

The company is currently keen to improve the performances of its underperforming projects alongside narrowing down the increase in costs amidst peaking commodity prices, added Walsh.

The statements, however, were in contrary to earlier claims of the company noted in April 2013 that it may offload individual diamond mines in Canada, Australia and Zimbabwe.

However, Rio is continuing its planned sale of aluminium and nickel arms. In addition, the company is also seeking expansion of its iron ore business expecting heavy opportunities from Southeast Asian markets.

"I don’t see our portfolio as being an issue where I’ve got to race out and do silly things because some analyst somewhere has written about the extent of diversification. The business is what the business is," remarked Walsh.