Diamond mine with 27 million carats of stone likely to be auctioned by India
In early August 2016, the global miner reported a 47 per cent slump in first-half profit to its weakest in 12 years and underlined the importance of cost-cutting.
In Short
- The Bunder deposit was discovered by Rio Tinto in 2004.
- Rio Tinto had begun a regional exploration program in 2002.
- The Bunder mines were expected to yield 37.4 million tonnes of kimberlite.
India is set to auction or allocate the Bunder diamond mining project based in Madhya Pradesh's Chattarpur district after global miner Rio Tinto decided to abandon it.
A statement from Rio Tinto had said that the company was carrying out an assessment of all ongoing projects across the world so that it can work efficiently in this phase of economic slowdown and give returns to their investors. In the course of this assessment, the company decided to not proceed further with the Bunder project and would try and wind up all infrastructure by end of 2016.
In early August 2016, the company reported a 47 per cent slump in first-half profit to its weakest in 12 years and underlined the importance of cost-cutting.
The Bunder deposit, which was discovered by Rio Tinto in 2004, is estimated to contain about 27.4 million carats of diamonds potentially worth billions of dollars.
The decision comes as a setback to Madhya Pradesh that had showcased the big ticket investment project as the game changer for the backward Bundelkhand region. Rio Tinto's decision came at a time when the government was seeking the help of it and its rivals, such as Anglo American, to explore for diamonds and gold to make India a major mineral producer.
Mines Secretary Balvinder Kumar said the withdrawal was a surprise as the company was close to getting a forest clearance for the mine from the environment ministry.
Kumar said he would talk to parties interested in Bunder when Rio Tinto formally hands the project back to the state government of Madhya Pradesh, where it is located.
The company had said that it would work with the Union government and Madhya Pradesh government to find a third party investor for the project.
Rio Tinto had begun a regional exploration program in 2002. A prospecting lease was granted in September 2006 and as per an order of magnitude study of October 2008, the Bunder mines were expected to yield 37.4 million tonnes of kimberlite containing 27.4 million carats of diamonds.
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