4 April, 2010 : Two top diamond mining companies of the world are busy prospecting in some of the most backward districts in the Andhra Pradesh state. Preliminary studies have shown possibilities of pockets of diamond reserves deep in the fields of Anantpur, Mahbubnagar, Khammam, Nalgonda, Chittoor and Kurnool districts.

International diamond mining companies like De Beers and ACC Rio Tinto have already been granted licenses to identify diamond reserves in Mahbubnagar and Nalgonda. While a reconnaissance license has been granted to ACC Rio Tinto to look for diamond reserves in about 5,000 sq. km. in Nalgonda, De Beers has been granted a similar license for Mahbubnagar.

“We are overwhelmed with the response from international companies. After confirming the reserves, these companies have to take another license to go ahead with production,” said a senior official in the mines department.

Diamond deposits occur in three types of geological modules; kimberlite pipes, conglomerate beds and alluvial gravel. The main diamond bearing area in India is the Panna belt in Madhya Pradesh and parts of Andhra Pradesh where there are estimated reserves of 28 lakh carats.