India's NMDC: Diamonds Worth $3.4 Million Await Near Tiger Reserve

NMDC, India's largest iron ore miner, is set to extract diamonds worth approximately $3.4 million from its mine near the Panna Tiger Reserve in Madhya Pradesh. The company, which operates the only mechanized diamond mine in Asia, has received authorization to resume mining, subject to certain directives, after a suspension of over three years due to environmental concerns.



NMDC's diamond mine at Panna, which commenced production in 1971-72, has a capacity of approximately 84,000 carats per year. In FY21, the mines produced 13,681 carats, while there was no production in FY22. Diamond sales last fiscal stood at 25,219 carats valued at ₹62.93 crore.

The company plans to balance environmental conservation and diamond mining near the tiger reserve by conducting studies on tiger movement and other environmental factors in consultation with the Panna Tiger Reserve authorities and the State Forest Research Institute (SFRI) at Jabalpur. NMDC has written to the SFRI for providing their consent and budgetary offer for conducting such studies. The Steel Ministry has set a July 1 deadline for the resumption of operations at the Panna diamond mine, and the finalization of the report on tiger movement and wildlife conservation conditions is expected by April 30. The environment impact assessment report is likely to be appraised by the Expert Advisory Committee in May, post which clearance for environmental clearance is expected by June.

NMDC's diamond mining operations in Panna have the potential to bring significant economic and social impacts to the local community. The company has directly employed over 5,000 individuals and created indirect job opportunities for over 20,000 people, supporting countless families across Bastar. NMDC has invested approximately Rs 1,400 crore in various CSR activities in Chhattisgarh alone in the last ten years, focusing on education, healthcare, infrastructure development, and community empowerment. The company has also contributed through royalties, taxes, and duties, totaling close to Rs 20,000 crore in the last six years, providing essential financial support for public services, infrastructure projects, and welfare programs that have benefited many of its residents and communities.

NMDC's diamond mining project at Panna has faced delays in obtaining environmental clearances and has been suspended for over three years due to its proximity to the Panna Tiger Reserve. However, the company has received authorization to resume mining, subject to certain directives, and is now focusing on extracting and processing diamonds from its existing mineral stockpiles. NMDC's diamond mining project at Panna has a longer history and more consistent production compared to previous attempts by other companies in the region. However, the project has also faced environmental challenges and delays, highlighting the need for responsible mining practices and careful consideration of the impact on local ecosystems.

In conclusion, NMDC's diamond mining operations at Panna have the potential to bring significant economic and social benefits to the local community while balancing environmental conservation and responsible mining practices. The company's commitment to environmental stewardship and community development further highlights its dedication to sustainable and responsible business conduct.