BHOPAL (Commodity Online): Diamond giant Rio Tinto is all set to pump $532 million into Bunder diamond mining project in Madhya Pradesh state.

The move comes after the Indian government’s decision to lease out the diamond mine to Rio Tinto.

India has been looking for investments from global miners because only 10 per cent of the country has been explored for its mineral wealth. India’s flourishing gems and jewellery industry meets its requirement for rough diamonds mostly through imports, and local mining by one of the world’s top producers of rough diamonds is expected to reduce the country’s dependence on other nations.

Production from the Madhya Pradesh mine was scheduled to start from 2016, depending on procedural clearances.

The Madhya Pradesh government had recommended the mining lease and the mines ministry is expected to give its approval within a fortnight. The lease would be Rio Tinto’s first for diamond mining in India, after nearly a decade in the country.

The company has been exploring for diamonds in India since 2001 and applied for a mining licence in the Chhatarpur district of Madhya Pradesh in 2008. Currently, Rio Tinto imports rough diamonds in India and then cuts and polishes the precious stone for sale in other countries.

India imports rough diamonds mostly from Africa and Russia.