NMDC to Extract $3.4 Million in Diamonds from Mine Near Tiger Reserve
ECONOMY & POLICY

NMDC to Extract $3.4 Million in Diamonds from Mine Near Tiger Reserve

India's state-run miner NMDC is expected to extract 6,500 carats of diamonds, valued at $3.4 million, this fiscal year from ores located near a tiger reserve, following the receipt of mining clearances last year, according to two sources. The miner had faced delays in obtaining environmental clearances and was forced to halt mining operations for over three years at the Panna mine in Madhya Pradesh due to its proximity to the tiger reserve.

The Supreme Court subsequently allowed NMDC to resume mining under certain guidelines, clearing the way for the company to restart operations. While NMDC has not yet commenced new mining activities, it is currently focusing on extracting and processing diamonds from the ore stockpiles at the Panna mine, the sources revealed.

The company mentioned that ore mining would begin in two to three months, while diamonds are being processed by feeding old stockpiles in the interim, according to a statement sent to Reuters via email. Since the resumption of operations, NMDC has already extracted diamonds worth 3,700 carats, amounting to $1.93 million, the sources, who requested anonymity until NMDC publicly discloses its diamond output, added.

The Panna mine, covering 275.96 hectares (681.91 acres), has been operational since the early 1970s and remains the only mechanized diamond mine in India. Madhya Pradesh is one of Asia’s key diamond mining regions.

Other global and domestic mining companies have attempted diamond extraction at the Bunder project near the Panna reserve but with little success. Before exiting the Bunder project in 2016-17, Anglo-Australian mining giant Rio Tinto had invested approximately $90 million over 14 years. Following Rio Tinto's departure, mining at the Bunder project has not resumed, mainly due to concerns about its location within a forested area that is home to tigers and other wildlife.

India's state-run miner NMDC is expected to extract 6,500 carats of diamonds, valued at $3.4 million, this fiscal year from ores located near a tiger reserve, following the receipt of mining clearances last year, according to two sources. The miner had faced delays in obtaining environmental clearances and was forced to halt mining operations for over three years at the Panna mine in Madhya Pradesh due to its proximity to the tiger reserve. The Supreme Court subsequently allowed NMDC to resume mining under certain guidelines, clearing the way for the company to restart operations. While NMDC has not yet commenced new mining activities, it is currently focusing on extracting and processing diamonds from the ore stockpiles at the Panna mine, the sources revealed. The company mentioned that ore mining would begin in two to three months, while diamonds are being processed by feeding old stockpiles in the interim, according to a statement sent to Reuters via email. Since the resumption of operations, NMDC has already extracted diamonds worth 3,700 carats, amounting to $1.93 million, the sources, who requested anonymity until NMDC publicly discloses its diamond output, added. The Panna mine, covering 275.96 hectares (681.91 acres), has been operational since the early 1970s and remains the only mechanized diamond mine in India. Madhya Pradesh is one of Asia’s key diamond mining regions. Other global and domestic mining companies have attempted diamond extraction at the Bunder project near the Panna reserve but with little success. Before exiting the Bunder project in 2016-17, Anglo-Australian mining giant Rio Tinto had invested approximately $90 million over 14 years. Following Rio Tinto's departure, mining at the Bunder project has not resumed, mainly due to concerns about its location within a forested area that is home to tigers and other wildlife.

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