The second-largest mining company of the world Rio Tinto has began production of diamonds from its Bunder Diamond project at Chhatarpur district in Madhya Pradesh (MP), a state official said today.
"Rio Tinto has commenced production and bulk sampling at Mumbai diamond auctions," MP Mining and Mineral Secretary S K Mishra told PTI on the sidelines of ICC organised roadshow for global investor's summit to be held at Khajuraho from October 22.
The company has so far invested about Rs 250 crore and mining lease had been offered on 475 hectares, he said.
Rio Tinto was given prospecting licence for the project in 2006.
"The company will gradually scale up investment and will cover 5,000 hectares over a period and the investment is expected to touch Rs 2,500 crore," Mishra said.
Madhya Pradesh's Additional Chief Secretary (Commerce, Industry and Employment), Satya Prakash had said the company will invest Rs 370 crore over the next three years.
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The state government has also earmarked 280 acres near Indore for a diamond park for value addition like cutting, polishing and jewellery.
De Beers is still in prospecting stage of exploration.
MP is the only diamond producing state with prospect of 1,200 thousand carats of diamond reserve.