The Hindu : Andhra Pradesh / Hyderabad News : NMDC moves apex court to reopen diamond mine

Online edition of India's National Newspaper
Wednesday, Apr 12, 2006

Andhra Pradesh

Andhra Pradesh - Hyderabad

NMDC moves apex court to reopen diamond mine

Staff Reporter

Says the mine's closure has resulted in a steep fall in production

HYDERABAD : The National Mineral Development Corporation (NMDC) has moved the Supreme Court to reopen its Panna Diamond Mine in Madhya Pradesh, having obtained all statutory clearances.

NMDC Chairman and Managing Director B. Ramesh Kumar said the mine's closure on the directive of the State Pollution Control Board and Ministry of Environment and Forests had led to a steep fall in production from 78,209 carats in 2004-05 to 48,874 carats in 2005-06. A committee was expected to visit the mine and submit its report, post which he expected the production to resume in about two months.

At a press conference here on Monday, he said Reconnaissance Permit (RP) had been obtained for diamond mine in an area of 2,300 square km at Kalyandurg in Anantapur district and for 2,010 sq. km at Panna/Satna areas of Madhya Pradesh. Having obtained RP, NMDC had now applied for prospecting licences.

Team to Tanzania

He said a second exploratory team was leaving for Tanzania by April-end looking for gold, a project for which an Ireland-based international consultant had been appointed for expert advice in detailed exploration.

Mr. Ramesh Kumar said that over the next four years, an investment of Rs. 2,500 crore towards expansion could be expected in all of NMDC's operational areas.

Significantly, a joint venture to mine iron ore in Australia was being actively considered he added.

Record breaking fiscal year

On the financial front the CMD said the corporation has registered an unparalleled performance, breaking earlier records and ending the fiscal with a 58 per cent increase in turnover from Rs. 2,230 crore in 2004-05 to Rs. 3,533 in 2005-06. It had paid interim dividends twice in the fiscal 2005-06 - 76.93 per cent in November 2005 and 115.40 per cent in February 2006.

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