Mining giant Rio Tinto has terminated its Bunder diamond mining project in India, multiple sources report. According to local reports over the last few weeks, environmental agencies refused permission to mine the area because of its adverse impact on forests and “tiger corridors” in the area. In a statement issued on August 19, however, Rio Tinto did not comment on these issues.
“As part of its ongoing efforts to drive shareholder value by conserving cash and cutting costs further, Rio Tinto has decided to not proceed with development of its Bunder project in India,” a spokesperson for the miner said. “Accordingly, we will be seeking to close all project infrastructure by the end of year 2016.”
According to the company, “Bunder deposit is a high-quality discovery”, and Rio Tinto “will now work with both the [Government of India/Union Government] and the Government of Madhya Pradesh and is currently looking at options for a third-party investor to carry forward the development of the project”.
The Bunder project, in the central Indian state of Madhya Pradesh, holds 53.7 million tonnes of Kimberlite ore with 34.2 million carats of diamonds, according to Rio Tinto’s website.
