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Rio Tinto Abandons Indian Diamond Mining Project
Aug 21, 2016 5:16 AM
By Rapaport News
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RAPAPORT... Rio Tinto has terminated its Bunder diamond mining project
in India, the company confirmed to Rapaport News.
The venture in the central Indian state of Madhya Pradesh
was tipped as the first significant diamond mine in India and would have been
one of only a few deposits in the country. The company declined to comment on
local reports that the nation’s environment ministry refused to grant
permission for the mine because of its potential impact on forests and tiger
habitats.
The mine was
likely to yield 34.2 million carats over its lifetime, according to Rio Tinto’s
website. Operations were expected to commence in 2019.
“As part of its ongoing efforts to drive shareholder value
by conserving cash and cutting costs further, Rio Tinto has decided to not
proceed with development of its Bunder project in India,” a spokesperson for
the miner said. “Accordingly, we will be seeking to close all project
infrastructure by the end of year 2016.”
Rio Tinto plans to close all related infrastructure by the end of the year, it said. The
deposit “is a high-quality discovery” and Rio Tinto will work with the Indian
government and the Madhya Pradesh regional authorities to seek a third-party
investor to continue its development. The company also said it will offer a voluntary severance scheme to contractors employed at the site.
“Rio Tinto remains committed to its diamonds business and the Indian diamond
industry through its two world-class underground mines in Australia and
Canada,” the spokesperson added, referring to the Argyle mine in Western
Australia and the Diavik deposit in the Northwest Territories.
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Tags:
Bunder, Bunder Project, environment, India, Madhya Pradesh, mining, Rapaport News, Rio Tinto
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