The first significant world-class diamond mine in India may be on the verge of discovery following Rio Tinto’s application for mining leases for a site in the Bundelkhand region of Madhya Pradesh.
The Bunder diamond project was part of a regional exploration in 2002, which resulted in a prospecting licence four years later followed by an order of magnitude study to evaluate the economic viability of the eight diamondiferous lamproites found. The results are expected by the end of the third quarter.
The exploration target for diamond mineralization at the site is 40 to 70 million tonnes at a grade of between 0.3 and 0.7 carats per tonne, the company says. Compared to India’s only other hard rock diamond mine, the targeted diamond grades at Bunder are at least three times greater.
“Diamonds are a significant part of the history of India and an important product for [our company],” said Nik Senapati, managing director of Rio Tinto in India. “We have spent more than 100 Crore rupees ($25 million US) over the last six years on diamond exploration and evaluation in India, and remain excited about the prospects for the Bunder project. The application for mining leases is confirmation of our commitment to both mining in India and the global diamond industry.”
The majority of Rio Tinto’s diamonds are processed in India. The company is waiting on environmental approval for a 10-tonne per hour dense media separation (DMS) plant to allow processing of bulk samples at the site.
