Bunder Mine Draws Growing Interest

RAPAPORT… Two major resources companies are considering bidding for
the Bunder diamond mine in India, after Rio Tinto offloaded the project earlier this year, Reuters reported.



Adani Group, an India-based conglomerate, and Vedanta
Resources, a London-headquartered group focused on Indian assets, have sent
teams to visit the site in recent months, the report said Thursday, citing
three unnamed sources with direct knowledge of the matter.



The deposit is located in the Madhya Pradesh state. Rio
Tinto walked away from the project last year to cut costs, and in February
announced it would gift the asset to the regional government.



Authorities in Madhya Pradesh, located in the center of
India, are likely to invite bids for the right to explore the Bunder mine in
the first week of November, Reuters said, citing Manohar Lal Dubey, the state’s
most senior government official for mineral resources.



The sale will only include the section of the deposit that
Rio Tinto has already explored and established to contain diamonds. An auction
would take place about 40 days after the government publishes a notice seeking
bids, Reuters cited the official as saying.



Bunder contains 32 million carats of rough diamonds, the
official said.



Spokespersons for Adani and Vedanta were not immediately
available for comment outside of working hours Sunday.

Image: Copyright © 2016 Rio Tinto