Diamond find reported in MP

ACC Rio Tinto has reportedly discovered diamonds in four kimberlites out of the 15 surveyed in Chhatarpur and Panna districts of Madhya Pradesh.

Similarly, Geo Maysore, another mining company, is hopeful of getting gold and nickel in Sidhi district. The company has surveyed Sidhi, Shadol, Umaria, Betul, Katni and Jabalpur.

"The company has indication of gold reserves in Sidhi district," said a government source.

There have been indications of gold in Kumera and Slimnabad of Katni district and of palladium and platinum in Betul.

ACC Rio Tinto was issued a reconnaissance permit in 2002 to explore diamonds in an area of 10,000 sq km in Chhattarpur and Panna.

However none of the government officials, including Secretary (Mineral Resource Department) DR Birdi, was available for comment on the status of the prospecting licences.

The company had last year demanded prospecting licences early this year to start large diameter drilling by this month.

Madhya Pradesh is the only state in India that produces diamonds. "The company has applied for prospecting licences in both the districts. The company has also conducted reconnaissance work in Sagar, Damoh and Tikamgarh districts with an investment of Rs 18 crore," a government spokesperson told Business Standard.

The state mining department and company executives discussed the prospects of diamonds in Madhya Pradesh

In May 2004 ACC Rio said it had discovered a new kimberlite pipe in the state and during the rest of 2004 and in 2005 it discovered seven more kimberlite pipes.

The company had also sought the state government's cooperation in the processing and approval of its Sagar, Shivpuri and Gwalior reconnaissance permit applications and pending forestry applications for drilling at the reconnaissance permit stage and support from the state to lobby the Centre for increasing the permissible prospecting licence size limit from 25 sq km per company per state.

ACC Rio Tinto Exploration Ltd, Geo Maysore Services (India) Pvt Ltd, BHP Minerals India Pvt Ltd, Adi Gold Mining Pvt Ltd and Dee Beers India Pvt Ltd were issued 17 reconnaissance permits (RPs) to explore diamonds and other minerals in 29,332.18 sq km in various parts including Chhattarpur, Tikamgarh, Damoh, Sagar, Narsinghpur, Chhindwara, Hoshangabad, Sidhi, Jabalpur, Umaria, Katni, Panna, Betul, Satna and Shahdol districts during 2002-2005. ACC Rio Tinto had been issued four RPs.

Madhya Pradesh is the only diamond producing state in India and the sector contributes 0.57 per cent to the total revenue receipts of the state. This year the state is expecting an amount of Rs 800 crore from mining activities.

According to the state government's mineral department, Madhya Pradesh has 13,34,359 carats of diamond reserves (April 2000).