Rio Tinto expects production at Bunder diamond mine to begin in 2019

Rio Tinto expects its Bunder diamond project in Madhya Pradesh, India to begin production in 2019, reports say. The mining giant has so far passed two stages of mine development - reconnaissance and prospecting, at the project since it began work in 2002. Taking it to the third stage, the company has so far received a letter of intent (LoI) from the state government and the company will now require environment and forest clearances and approvals for a mining plan, for the LoI to be converted into an official mining lease.

The company is looking at producing up to three million carats of diamonds annually from the mine, reports say. The mine holds potential to yield 37 million tonnes of kimberlite with around 27.4 million carats of diamonds and a life of 25 years, reports suggest. Rio Tinto expects construction activities to begin in 2017. And views the diamond deposit to be seven times richer than the Panna diamond mine and with a 20 times higher production rate, reports add.