NMDC to resume diamond mining at Panna in 3 months
Sunday, 14 Jun 2009
PTI reported that NMDC is set to restart mining at the Panna diamond reserves in Madhya Pradesh in the next 3 months with the SC giving conditional nod to such activities at the site.
Mr Virbhadra Singh steel minister said "Directions of the Supreme Court have been obtained recently, paving the way for reopening of these mines."
However, SC asked NMDC to pay INR 10.69 crore as net present value to the Madhya Pradesh government for reopening the Asia's only mechanized diamond mine.
The resumption of the mining operations is expected to make the miner corner huge margin. In 2001-02, the mine had an annual production capacity of 100,000 carats. The excavation activities at Panna reserves were a source of employment to about 250 people. The resumption of diamond mining is likely to create more jobs in the region.
NMDC had reported a marginal increase in net profit at INR 1,021.19 crore for the Q4 ended March 31st 2009. The mining firm had a net profit of INR 1,016.97 crore in the March quarter of FY 2008.
