Bunder Project

The Bunder project is Rio Tinto's first and most advanced diamond mining venture in India. The Bunder project comprises a cluster of eight lamproites (volcanic rock), located in the Bundelkhand region of Madhya Pradesh, 500 km south east of Delhi. Rio Tinto discovered the Bunder deposit in 2004 as part of a regional exploration reconnaissance programme which commenced in 2002. A Prospecting License was executed in September 2006, which allowed exploration activities to continue, and an order of magnitude study was commenced to evaluate the economic viability of the eight diamondiferous lamproites. The Order of Magnitude Study determined the Bunder deposit to have an inferred resource of 27.4 million carats. As a result, Rio Tinto has identified a diamond resource seven times richer than the Panna mine (also located in Madhya Pradesh), with a likely production rate at least 20 times greater than at the Panna mine. Madhya Pradesh would therefore rank, in terms of volume and value, in the top ten diamond producing regions in the world. Rio Tinto has applied for a mining lease and has constructed a state of the art sample plant, to process bulk samples of ore on the project site. The Bunder sample processing plant will assist in further evaluating the value and grade of the Bunder deposit. This is critical to the development of a world class diamond mine. The sample processing plant at Bunder is highly automated, uses minimal water through recycling and water harvesting, and does not use any chemicals in the processing of the diamonds. Additionally the plant is entirely modular, does not require any permanent structure and is designed to minimise noise and dust. The next phase of evaluation of the Bunder project will involve engineering studies and the social and environmental impacts of a diamond mine. These studies will take two to three years to complete. The total investment to develop a mine at Bunder project is estimated at least 2000 crore rupees. The Bunder project currently employs approximately 400 people, of which 70 per cent are from the local communities that surround the project area. Over time, direct employment from a fully operational diamond mine at Bunder is anticipated. The importance of this investment in a diamond mine in Madhya Pradesh lies in the fact that it will provide significant socio and economic opportunities for the Chhatarpur district - local employment, training, health and education are all priorities. In this regard Rio Tinto is a global leader in developing sustainable futures for the diamonds communities it operates in, in many different landscapes around the world.[1]

Bunder Project is a proposed new diamond mine , located at Janpad Panchayat Buxwaha, Tehsil Buxwaha, District, Chhatarpur (Madhya Pradesh) India.[2] If the project is approved and proves viable, it could be the "first significant world class diamond mine in India", according to the Rio Tinto Group, who have proposed the mine.[2] The group announced on 23 June 2008 that it had filed for a mining lease to proceed with the project. They are also waiting permission from the pollution control board for a Dense Media Separation Plant which would allow samples taken from the mine to be processed on location. The foundation of the plant was inaugurated by Madhya Pradesh Chief Minister Shivraj Singh Chauhan on 17 January 2007. Government accorded pollution clearance certificate by its letter no. 213/EPCO/SEIAA/08 dated 22.11.08 for DMS plant

The company is targeting diamond mineralization at the site of a considerably higher grade than produced at the Panna mine, which is the only hard rock diamond mine currently operating in India.[3][3]

The success of the project is expected to play a role in the Rio Tinto Group's recently announced joint venture with the National Mineral Development Corporation seeking iron-ore in India and abroad.[4]

Contents

community programme

Since 2006, Rio Tinto has undertaken prospecting activities in Chhattarpur district in Bundelkhand region of Madhya Pradesh. The Bunder community comprises 15 villages in four Panchyats which represents the core community for the Bunder deposit. The total population of the Bunder community is approximately 15,000 people. The nearest marketplace is located in the neighbouring community Buxwaha, with a population of 12,000. Some of the key challenges facing the Bunder community include: Water scarcity, due to low rainfall Poor infrastructure Limited job opportunities Rain fed agricultural practices Livelihoods and opportunities for diversification and value addition Land ownership and usage Caste and gender issues Poverty and indebtedness Migration Rio Tinto has a dedicated community relations team working onsite at the Bunder diamond project. The team works with government and non-government partner organisations to deliver outcomes for local communities, which Rio Tinto cannot achieve alone given some of the significant challenges faced such as nutrition, healthcare and literacy. At Bunder, Rio Tinto is working to: Have a continuous two-way dialogue with the Bunder community; Form strategic partnerships with government, multilateral institutions, local bodies and communities; and Build and strengthen local institutions to create sustainable networks.[5]

objectives

In consultation with the local community, the Bunder Community Relations team has set the following objectives. Examples of key activities are given against each programme objective. Awareness raising; including the running of a community information centre to provide an opportunity for local community members to easily access information about the Bunder project and other relevant issues; general awareness raising on development issues through street plays, cultural events, film shows, fortnightly gatherings etc; health, hygiene and cleanliness awareness drives' AIDS awareness; cultural heritage conservation; and village clean-up drives. Water resources management and development; involving the repair and maintenance of traditional water structures; deepening of water augmentation ponds; hand pump repair drives; drip irrigation initiatives; rain water harvesting; and awareness raising about water resources through film shows. Institutional building, networking and convergence; such as the institutionalisation of informal village level community groups; building partnerships with government agencies and non government organisations; working with development programmes run by the government; building capacity and providing training and exposure opportunities. Environment and livelihoods promotion; including plantation drives; promotion of high yielding vegetable seeds and training on appropriate farming methods; cattle breed improvements, vermi composting at site; vaccination and animal health camps; and environment awareness drives. Community health, education and capacity building; including hosting community health clinics in two locations;a dedicated mother and child nutrition programme in partnership with UNICEF; holding health camps in collaboration with the health department; and strengthening primary education systems. Since July 2007, the free bi-weekly health clinic in Bajna, has undertaken 13,472 consultations and in 2009 alone, 3,636 free medical assistance/consultations were provided to the villagers from 15 surrounding villages around Bajna. Similarly, total 1,788 consultations were provided to the people of the neighbouring villages in 2009 from Bunder camp clinic.[6]

Local Employment

Maximising local employment is one of the priorities of the Bunder community relations programme. Currently the Bunder Project employs approximately 400 people, of which around 70 per cent from neighbouring communities. Local community employment is organised on a rotational basis and around 170 families currently benefit from employment opportunities at the project. Over time, direct employment from a fully operational mine is anticipated to be some 400 employees, with hundreds of other local jobs to provide the necessary goods and services to support a mine. For example, the Bunder team has been working to establish a range of local business associates as regular vendors, contractors and suppliers. Recently, Rio Tinto has helped to establish a vegetable growers group which supplies fruits and vegetables for the camp kitchen.[7]

Rio Tinto Group is working in association with Southwest Pinnacle, SSQ and Computer Care & Ware.

The location has been under development since it was first scouted in 2004, with the execution of a prospecting license in September 2006.[8]

References

  1. ^ http://www.riotintoindia.com/bunder.html
  2. ^ a b Rio Tinto. (2008-06-23) Rio Tinto sets its sights on first significant world class diamond mine in India Company website. Retrieved 2008-09-09.
  3. ^ a b India Infoline News Service. (2008-06-23) Rio Tinto applies for Indian diamond mining lease indiainfoline.com. Retrieved 2008-08-09.
  4. ^ Roy, Debarati and Rebecca Keenan. (2008-08-13) Rio Tinto, NMDC plan to jointly buy iron-ore deposits Bloomberg. Retrieved 2008-09-09.
  5. ^ http://www.riotintoindia.com/bunder_project.html
  6. ^ http://www.riotintoindia.com/bundr_obj.html
  7. ^ http://www.riotintoindia.com/local.html
  8. ^ Commodity Online. (2008-06-25) Rio Tinto targets 40-70 MT of diamond from MP commodityonline.com. Retrieved 2008-09-09.

External links