India to Extract 6,500 Carats of Diamonds Worth $3.4 Million This Fiscal Year

TDT | Manama

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India's state-run miner NMDC is set to extract 6,500 carats of diamonds, valued at $3.4 million, this fiscal year from ore stockpiles at its Panna mine in Madhya Pradesh. This development follows the resumption of operations after securing mining clearances last year, according to sources familiar with the matter.

The Panna mine, located near a tiger reserve, faced delays due to environmental clearance issues, halting operations for over three years. However, the Supreme Court granted NMDC permission to resume mining under specific guidelines, enabling the company to restart activities.

Currently, NMDC is processing diamonds from existing ore stockpiles while preparing to resume new rounds of ore mining in the coming months. "We will start ore mining in two to three months. In the meantime, diamonds are being processed from old stockpiles," the company stated in an email to Reuters.

Since resuming operations, NMDC has extracted 3,700 carats of diamonds, valued at $1.93 million, from ore stockpiles. The Panna mine, spanning 275.96 hectares (681.91 acres), is India's only mechanized diamond mine and has been operational since the early 1970s.

Madhya Pradesh is a key diamond mining region in Asia, although efforts to expand mining have faced challenges. Global companies, including Rio Tinto, have invested heavily in the state, particularly in the Bunder project near the Panna reserve. However, environmental and wildlife conservation concerns have hindered progress.

Rio Tinto spent $90 million over 14 years on the Bunder project before exiting in 2016-17, citing challenges related to the site’s location within a forested tiger habitat. Mining at the Bunder project has not resumed since Rio Tinto's departure.

NMDC's renewed operations at the Panna mine highlight the balance between resource extraction and environmental conservation in India's diamond mining sector.