Rio Tinto discovers diamond deposit in Chhatarpur, MP

BHOPAL: Rio Tinto has discovered diamond deposit in Chhatarpur district of Madhya Pradesh, a top official of state directorate of geology and mining said.

Rio Tinto Diamond - one of the largest producers of rough diamond - has sought the mining lease from state government for running its commercial business in Chhatarpur, he added. Chhatarpur is the second district after Panna in the state where diamond deposit was discovered.

According to the officials, they were expecting 30 million carats of diamond deposit in Chhatarpur and the state government is hopeful of getting Rs 100 crore royalty from this project's commercial production.

Rio Tinto has put in around USD 25 million in exploring and discovering the diamond deposit, sources said.

The firm was exploring diamond reserve for well over four years and eventually discovered it some months ago, they said.

Rio Tinto is believed to be the first in the last five years which has got prospecting license for diamond exploration in India.