India’s state-owned mining company, NMDC, is projected to yield 6,500 carats of diamonds during the current fiscal year.
These diamonds, with an estimated value of $3.4 million, will be extracted from ores in a mine situated close to a tiger reserve, Reuters reported on Monday.
The mining operations were initiated following the acquisition of necessary mining clearances in the previous year, Reuters quoted two sources in the report.
Delays
The mining company encountered significant delays in obtaining the necessary environmental clearances for their operations at the Panna mine, located in the central Indian state of Madhya Pradesh.
These delays were primarily attributed to the mine’s proximity to a sensitive tiger reserve, raising concerns about potential environmental damage and disruption to the wildlife habitat, according to the report.
As a result of these regulatory hurdles, the company was forced to halt all mining activities at the Panna site for a period exceeding three years.
This prolonged suspension of operations had severe financial implications for the company and highlighted the challenges of balancing industrial development with environmental protection, particularly in ecologically sensitive areas.
The Supreme Court had later permitted NMDC to mine, keeping in consideration certain guidelines.
This prompted the company to start operations once again.
NMDC has not initiated new mining operations.
Different strategy
Instead, it is currently concentrating its efforts on maximizing diamond yield from existing ore stockpiles at its Panna mine, according to the report.
This strategic shift allows NMDC to continue production and generate revenue while potentially evaluating the feasibility of new mining ventures.
By focusing on processing ore stockpiles, the company can optimize its resource utilization and maintain a steady supply of diamonds to the market.
The company told Reuters:
We will start ore mining from the mines in two-three months, and in the meanwhile diamonds are processed through feeding of old stockpiles.
Since resuming operations, the company has successfully extracted a significant quantity of diamonds from the processed ore.
Based on current estimates, the extracted diamonds weigh approximately 3,700 carats and have an estimated market value of $1.93 million, according to a source quoted in the report.
The only mechanized diamond mine in the country, spanning 275.96 hectares (681.91 acres), commenced operations in the early 1970s.
Madhya Pradesh is one of the major diamond producing regions in Asia.
Bunder diamond project
The Bunder diamond project, situated near the Panna reserve in Madhya Pradesh, has been a site of exploration for both global and domestic mining companies.
These companies have invested resources and efforts into extracting diamonds from the site.
However, despite the attempts and expectations, the Bunder project has yielded minimal success in terms of diamond production. The geological challenges, combined with the complexities of diamond mining, have contributed to the project’s limited output.
The Anglo-Australian mining giant Rio Tinto invested a significant amount of time and money into the Bunder project before ultimately deciding to exit.
Over the course of 14 years, the company spent approximately $90 million on the mine. However, despite this substantial investment, Rio Tinto made the decision to withdraw from the project in 2016-17.
The Bunder mining project has remained stagnant since Rio Tinto’s withdrawal, primarily due to its location within a sensitive ecological zone.
The area is known for its rich biodiversity, including a significant population of tigers and other wildlife species.
The presence of endangered species like tigers has further intensified the opposition to the project, as it could jeopardize their survival and disrupt the delicate balance of the ecosystem.
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