Legends have it that India was the only source of diamonds in the world for over 3000 years till diamond deposits were located in Brazil and South Africa. But ironically, India now imports rough diamonds from mining producing countries and miners despite being the largest diamond manufacturing country in the world. Mining activity in the country is almost negligible right now, with some projects like Bunder Project, which was started by the multinational mining company Rio Tinto, but remains currently stalled. Smaller private miners like Vajra Diamonds and a few others are meanwhile striving hard to mine diamonds from the many diamond- rich sites in India.
The Panna Mines are situated in the interior of Panna district, in the state of Madhya Pradesh in Northern India. The diamond mines in Panna are managed under the Diamond Mining Project of National Mineral Development Corporation (NMDC Ltd), a Government of India Enterprise. NMDC is the only Government of India owned producer of diamond in India, from its Majhgawan mine at Panna, Madhya Pradesh. However, mining activity in Panna has been suspended of late due to various reasons.
The Panna group, as it is known locally, consists of a large group of diamond deposits extending North-East on a branch of the Vindhya Range about 240 km or so. They just about cover an area of about 20 acres (81,000 m2). Great pits, 7.6 m in diameter and, perhaps, 9.1 m in depth, were dug for the sake of reaching the diamond conglomerate.
The earlier exploration in Panna, according to reports, did not produce mines that produced quality diamonds. The most productive mines were in the 1860s and were found in Sakaria, around 32 km from Panna. Panna diamonds are classified in 4 grades, Motichul, clear and brilliant; Manik, with a faint orange tint; Panna, verging in tint towards green; and Bunsput, sepia coloured. According to hearsay, in other mines a government agency leases the land every year to prospective miners. The mined diamonds are all collected by the district magistrate of Panna and are later auctioned. Huge number of diamonds of different carat and shade are offered and auctions are open to the public against a deposit of about US$ 100.
A visit to Panna will lead one to those areas of the town that are the rich in diamond sites. These mines are found on an area of 80 km belt, beginning from the Paharikhera North-East to Majhgawan South-West, stretching to a breadth of around 30 kms. Similar to the Australian method, here too the diamonds occur in a pipe of olivine lamproite. Various grades of diamonds can be found here, varying from 13 carat per thousand hectares to 6 carat per thousand hectares. Currently, the area where diamonds are mined is under the government control within tight security.
The Panna mines at Majjhgavan are Asia's biggest mechanised diamond mines and its diamonds are rated next only to those produced from South African mines. NMDC, which is the only organised producer of diamond in the country, began its mining operations in Panna diamond mines in 1968 and since then it has unearthed a large number of diamonds from its pit. However, in 2011, the government-run mineral giant NMDC struck it rich when it unearthed a 37.68 carat diamond, which was the biggest ever gem (white rough diamond of octahedron shape of good quality) produced from the diamond mines in Panna. The previous big haul from Panna mines was in June 2010 when a 34.37 carat diamond was recovered. Earlier, the mines had produced a 32 carat diamond in 2005 and a 30.30 carat diamond in 2003.
The mining operations, which closed in Panna in 2005 for want of forest clearance and approvals from the adjoining Panna National Park, resumed in August 2009 after getting a conditional nod from the Supreme Court. Incidentally, the Panna Park is also a tiger habitat; and the Panna mines have estimated reserves of 12 lakh carats of diamond.
In Oct, 2014, the NMDC was asked by the environment impact monitoring panel to shut diamond mines in Panna by 2016 to save the tiger. The authorities however refuted it by saying that tigers had in fact vanished from Panna when diamond mining operations were shut and blamed poachers are operating with an agenda.
Between August 2005 and June 2009, NMDC mines around ‘Panna tiger reserve’ were closed. Officials of National Tiger Conservation Authority (NTCA) declared the reserve had 'zero' tiger population in 2009, when there was no mining activity. Now, Panna is home to 25 tigers after a successful reintroduction programme. "How can someone assume diamond mines are disturbing tigers when big cats disappeared only when our mines were closed," said an NMDC official. The corporation is yet to make an official submission on the closure notice.
Chief wildlife warden and chairman of the committee, Narendra Kumar, said rules have been flouted and mines are causing an adverse impact on tiger conservation. Notices sent to NDMC reads, environment ministry's sanction for mining in Panna was given to NMDC on condition it would prepare a closure report with time-bound targets to shut operations in five years. The Chairman of Supreme Court appointed committee had stated that "NMDC is yet to come up with a closure schedule. We have deliberated extensively on the negative impact of mining on the tiger reserve. The committee has concluded that extraction and production process of diamonds at Majahgawan mines should come to an end by June 30, 2016. And reclamation and rehabilitation process and handing over the area to Panna reserve should be completed by June 30, 2018. NDMC should table its closure plan by December 2014."
In 2012, the SC-appointed committee had visited Panna reserve in Madhya Pradesh to inspect diamond mines and deliberate on the closure plan. The committee was set up on August 13, 2008, and the first meeting was held on June 2, 2011. The committee looked into mine closure plan and annual work plan for utilization of funds received from NMDC. In Sept 2014, the monitoring panel headed by Field director of Panna Tiger Reserve RS Murthy gave instructions for closure of diamond mining in Panna tiger reserve by 2017. "Our recommendation is in line with earlier apprehensions that mining activity in the tiger reserve and sanctuary will affect the wildlife, especially the population of tigers. We have informed the National Mineral Development Corporation (NDMC) about our recommendation and have sought a detailed mining closure plan from them," he said.
In fact, in 2005 when the MP state wildlife protection board gave mining clearance to NMDC, it was with the condition that it should phase out its operations by 2020. Considering the problems that have stalled the Panna diamond project, it is not clear whether there is a possibility of the project resuming in the near future.
Meanwhile, something in the air feels that the Panna diamond story is not over as yet...
Aruna Gaitonde, Editor-in-Chief of the Indian Bureau, Rough&Polished
