Share This Article
India’s state-run miner, NMDC, is expected to extract 6,500 carats of diamonds, valued at $3.4 million, from its Panna mine in Madhya Pradesh during the current fiscal year. This move comes after the company received mining clearances last year, following a long hiatus due to environmental concerns. The mine, located near a protected tiger reserve, faced significant delays as NMDC awaited approval from environmental regulators. The Supreme Court’s eventual permission allowed the company to resume operations under strict guidelines to safeguard the surrounding wildlife and environment.
The Panna mine, spanning 275.96 hectares (681.91 acres), is the only mechanized diamond mine in the country and has been operational since the early 1970s. NMDC halted mining for over three years due to its proximity to the tiger reserve, leading to concerns about environmental degradation and the impact on wildlife. However, after the Supreme Court’s intervention, NMDC was granted the green light to continue operations, provided that they follow certain environmental and safety protocols.
While the company has not yet started mining fresh ores, it has focused on processing diamonds from existing ore stockpiles at the site. According to sources, NMDC has already extracted 3,700 carats of diamonds, valued at $1.93 million, since it resumed operations. The miner expects to begin extracting fresh ores from the Panna mine in the next two to three months. In the meantime, diamond processing continues with the old stockpiles that were accumulated during the halt in operations.
Madhya Pradesh is one of Asia’s prominent diamond mining regions, attracting both global and domestic mining companies. Despite past challenges in the region, such as Rio Tinto’s exit from the Bunder diamond project after spending $90 million over 14 years, NMDC’s success at Panna showcases the state’s potential in diamond mining. The Bunder project, also located near the Panna reserve, has seen limited progress due to concerns about wildlife conservation and its location in a forested area.
The resumption of mining at NMDC’s Panna mine is seen as a significant step forward for the Indian diamond industry. As the only mechanized diamond mining operation in the country, Panna plays a crucial role in India’s ambitions to bolster its domestic mining capacity. With the added regulatory clearances and the company’s commitment to sustainable practices, NMDC is optimistic about meeting its production targets and contributing to India’s overall diamond output.