The Ministry of Steel is planning to resume operations at the diamond mines in Panna, Madhya Pradesh, in July this year. The mines are operated by NMDC Ltd., the country’s largest iron ore merchant miner, and a CPSE under the ministry.

And according to a report accessed by businessline, the ministry has set a timeline of June 15 for obtaining environmental clearances and will start production from July 1.

Panna mines incurred a loss of around ₹49 crore in April-December of FY23, and the NMDC management is hopeful of a turnaround in the next year or so.

Panna diamond mines

The Diamond Mining Project at Majhgawan-Panna commenced diamond production in 1971–72.

The mine is located about 15 km from Panna town and is the only mechanised diamond mine in the country. The project includes an ore processing plant, including a heavy media separation unit, an X-ray sorter for diamond separation, and a disposal system for the tailings generated.

In FY21, the mines had achieved a production of 13,681 carats, while there was no production in FY22, as per the NMDC’s last fiscal annual report. Diamond sales stood at 25,219 carats last fiscal and were valued at ₹62.93 crore.

The annual report (FY22) also said that remote sensing studies have been completed in Chhattarpur Panna Block 1, Chhattarpur Panna Block 2, and Damoh Block, Panna (5 prospective blocks), and Additional 12 diamond blocks. Around 3,882 meters of drilling have been completed in five blocks, and balance drilling in revenue areas is in progress.

“Matter is being pursued with the Forest Department for obtaining permission to drill in 4 additional blocks,” it said.

Statutory clearances required

According to the ministry report, the diamond mining project requires some statutory clearances.

The National Wildlife Board has reportedly issued a permission letter to NMDC with no objection certificates after the miner got clearance from the Supreme Court.

The ministry report mentions, environment clearance application was submitted on September 17, 2018, and the Ministry of Environment had informed that they would consider the application once the Apex Court grants permission to go ahead.

“It is likely to take about six months to get the clearance, which includes the terms of reference, preparation of environmental impact assessment and environmental management plan reports, and submission presentation, etc.” it adds.