Diamond Mining and Trade



  • A large area of Panna Diamond mines comes(only mine in Asia) inside the Panna Tiger Reserve and hence Environmental activists appealed for stopping mining at Panna.
  • Tiger reserve says mining is leading to extreme risk of extinction of tigers.
  • 2014 Task Force said that mining doesn’t harm tigers.
  • NMDC does mining here. NMDC has to take Environment No Objection Certificate every five years according to SC orders.
  • But the lease has been extended till 2020.
  • Diamond was also used to be mined at Golconda.
  • 2 sources of Diamond
  1. Primary rocks à Kimberlite
  2. Secondary rocks
  • NMDC estimates that Panna mines still have 10 lakh carat Diamond.
  • Panna is popular in whole world but this town has marginalized and poor people. It falls in Bundelkhand.
  • Panna is neither suitable for Agriculture nor for residence as it is stony.
  • Finding Diamond is like finding a needle in a haystack. So labourers divide the field and dig deep down till 10 feet and the soil is washed off and the left stones can be see through Naked eyes to find out the diamond. Then stones are observed one by one.
  • Three quality of Diamonds are found here
  1. Gem quality
  2. Industrial quality
  3. Dark brown
  • Sometimes it is of very good quality.
  • Patta is given to mine Diamonds
  • The Diamond auctioned from here is processed in Mumbai and Surat but in Panna market , there is neither flourishing Commerce or business nor the Diamond business has new techniques.
  • Because of Downfall of Panna, 10000 workers lost jobs and started moving to Delhi and Mumbai.
  • In MP, Chattarpur district’s Buxwaha regions – a new mine has been found after four decades.Mining will soon start here—has Khajuraho temple.Rio Tinto started finding Diamond in 2002 and got success in 2004 .According to co mpany, the diamond found here can be more superior and in more amount that Panna.–> Bunder Diamond processing plant in 2009.Diamond’s first batch is expected to come in 2019.The age of this mine is expected to be 25 years.
  • Rio Tinto is saying that it will provide employment but locals are protesting against it and says that Forests are their way of life and also this project is near Tiger corridor.
  • India can get entry into top 10 if this happens.

Condition of Diamond trade in Surat

  • India is biggest market for Diamond processing (95% of World’s trade) but Diamond production it lacks behind many.
  • If the Buxwaha mine fructifies , it can revive the industry.
  • Jems and Jelelleries à 6-7% of India’s GDP.
  • It is very important for export and workers. That’s why Government has included it in “Focus Area”.
  • India is ahead of everyone in cutting and polishing of Diamond. But china is also challenging India now.
  • But the contribution of Diamond in the Jems and Jewelleries sector is decreasing day by day which is a cause of worry.
  • For Long time, no new mining has started in all of the countries. Also those where it is continuing, there is expectation that it will reduce to half by 2020.
  • Diamond producing countries like Botswana, Namibia and South Africa have already exploited their reserves.
  • Workers have been losing jobs but the trade is still rising.
  • Surat only contributes to 80% of India’s Diamond business.
  • Surat doest have mines but has new techniques and Industrial centre has made it the centre.
  • The Diamond trade starting booming in Surat in 1970s but due to absence of sophisticated techniques , for long time only small size diamonds were imported – i.e less than ½ carat.
  • Later , technologies and labourers came and started working as daily wage workers. It is still seen as Unorganized sector.
  • More than 15000 workers have been removed.
  • Some small traders have removed workers which others have left the trade.
  • The small and medium enterprises are much more than large enterprises.
  • Most of the Tribals are associated with this trade in surat.
  • Surat trade has been affected due to decrease in demand from USA, Middle East and China.

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