Rio Tinto to get mining lease for MP project soon

The Mines Ministry is likely to give an in-principle approval to global giant Rio Tinto for its diamond mining project in Madhya Pradesh in which the London-based firm is looking to invest around Rs 2,200 crore.
    
"The Madhya Pradesh government has already recommended mining lease to Rio Tinto's Bunder project and now the Centre may clear it in the next 10-15 days," a senior Mines Ministry official told PTI today.
    
When contacted, Rio Tinto India Managing Director Nik Senapati said, "We are happy to hear that mining concession is at the most advanced stage. We are looking forward to getting the environment clearances among other things soon. We are excited to be working in India."
    
After the Mines Ministry approves the recommendation from the state for granting the lease, the company has to seek environmental and forest clearances from the Centre before starting mining.
    
Rio Tinto is planning to invest around Rs 2,200 crore in a phased manner in the project, the Ministry official said.
    
The Bunder project in Chhattarpur district of MP has estimated reserves of 37 million tonne. At 0.7 carat per tonne, the project would give 27.4 million carats of diamond. Also, the proposed project is in proximity to the state-owned NMDC's Panna diamond reserves.
    
The mining project is being undertaken by the company's subsidiary Rio Tinto Diamonds and investment would be made through its domestic arm Rio Tinto Exploration India.

"If the company gets all the regulatory approvals in time, the project could start by 2016 from where it is targeting to mine about 3-4 million carats per annum," the official said.

Rio Tinto had got prospecting licence in 2006 and subsequently sought mining lease in June 2008.
    
Meanwhile, the company is also planning to start the pre-feasibility study this year, which may entail an investment of up to Rs 400 crore, Rio Tinto Diamonds Managing Director Bruce Cox had earlier said.
    
Rio Tinto has spent more than Rs 100 crore over the last five years on diamond exploration in the country and is the first foreign company to be granted prospecting licence. It had discovered a cluster of eight diamondiferous lamproites in the country.
    
Rio Tinto is one of the world?s major diamond producers and has 100 per cent control over the the Argyle Mines in Australia, 60 per cent of the Diavik Mines in Canada and a 78 per cent interest in the Murowa Mines in Africa, according to the information available on its website.