The company is discussing the plans with the government to receive environment approvals.
Rio Tinto CEO Sam Walsh has approached India’s Prime Minister Narendra Modi over the planned project, reported Bloomberg.
According to the company, the Bunder project could be one among the four mines planned to commence production in the next decade.
The country’s retail diamond jewellery market, which is worth around $10bn, is estimated to grow by 15% a year until 2019.
Rio Tinto is also looking to set up an iron-ore operation in Odisha in which the company holds a 51% stake.
Image: Rio Tinto diamond exploration in Madhya Pradesh. Photo: © Rio Tinto 2014.
