Bhopal: Madhya Pradesh (India) government has decided to auction mining rights for the Bunder diamonds project in Chhattarpur district left mid-way by Rio Tinto in 2016, reports The Times of India.

The state cabinet approved auction of diamond mines to companies based in Madhya Pradesh first and thereafter, mining firms from outside the state. “After exploration, the diamond reserves have been estimated at 342 mln carats worth Rs 60,000 crore,” said minister for law PC Sharma. “Preference will be given to mining companies based in Madhya Pradesh and then, it will be open for firms from outside the state,” Sharma said.

The state government had signed an agreement with Rio Tinto and issued a 30-year mining lease to the company from November 2011. However, in August 2016 the company announced it would no longer proceed with its Bunder diamonds project because of commercial reasons.