Editor’s Note
This article outlines the economic potential of the Bunder Diamond Block project in Madhya Pradesh, highlighting projected revenue and job creation. It is important to note that such large-scale mining projects often involve complex environmental and social considerations, which are not detailed in this brief overview.
The Bunder Diamond Block Greenfield project is set to commence in the Buxwaha tehsil of Chhatarpur district, Madhya Pradesh. This project, won by the Essel company, is expected to bring the government Rs 28,000 crore in revenue and generate employment for thousands of people.
The Bunder Diamond Block was discovered between 2005 and 2011. Subsequently, in 2012, Australia’s Rio Tinto was issued a Letter of Intent (LOI) for a mining lease over a 954-hectare area. Although Rio Tinto obtained several approvals, it withdrew from the project in 2017, after which the project reverted to the Madhya Pradesh government.
The block was auctioned in 2019, with several companies participating. The Madhya Pradesh government received a bid offering a 30.05% revenue share. On December 19, 2019, the LOI was issued to Essel, the highest bidder. To minimize total environmental emissions, the mining lease area was reduced from 954 hectares to 364 hectares. This block contains an estimated 3.4 crore carats of diamonds, with an annual production of approximately 30 lakh carats of rough diamonds expected.
This project will place India among the world’s top 10 largest producers of rough diamonds. Once operational, it will be Asia’s largest diamond-producing mine and one of the world’s top 15 diamond mines. It will generate employment and promote a self-reliant India. Developing this project will cost Rs 2,500 crore.
Chhatarpur is a socially and economically backward district, making this project highly significant. As per the LOI terms, diamonds from the project will first be auctioned within Madhya Pradesh. The state government is also establishing an auction center for diamonds, where industries related to cutting, polishing, and jewelry making will be developed.
The 364-hectare project area has no villages. Before granting the mining lease to the company, an advance payment of Rs 275 crore will be made to the state government, of which Rs 27.5 crore has already been paid. Additionally, Rs 200 crore will be paid for land costs. Since the block was auctioned at a 30.05% revenue share, the government is expected to receive Rs 28,000 crore from it.
The project involves 382 hectares of forest land, which is only 0.25% of Chhatarpur’s total forest area. It is estimated that only 1 in every 400 trees will be affected by the project. Therefore, the company will plant 3.83 lakh trees, while the number of affected trees will be only 2.15 lakh. The tree planting initiative will commence before any trees are affected.
