Procurement News Notice |
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| PNN | 526 |
| Work Detail | Madhya Pradesh government has admitted that mining giant Rio Tinto's decision to wrap up operations at its Bunder diamond mining project in Buxwah tehsil in Chhatarpur district is a "huge setback". The company has been working on the project for 12 years, but failed to get environmental clearance. In a brief statement, Rio Tino cited closure of project "as part of its ongoing efforts to drive shareholder value by conserving cash and cutting costs further and it has decided not to proceed with development of its Bunder project in India." Though the mining major will shut its project infrastructure by end of 2016, it would want a 'third-party' investor to carry out development of the project, a statement of the company said. "Rio Tinto firmly believes Bunder deposit is a high-quality discovery," it stated. But neither Madhya Pradesh government nor the multinational company has divulged details about the prospective third-party investor. Talking to TOI before leaving for United States with the chief minister on Saturday to woo investors, minister for mining and industry Rajendra Shukla termed Rito Tinto's decision to pack-up "a major setback" for the state. He said this was a major foreign direct investment. "Rio Tinto can only decide on the third party to carry out mining operations at Bunder as it hold mining lease," said Shukla. However, the mining giant is tight-lipped over the issue. The minister said the "final clearance of mining lease is given only after environmental clearance which was in final stage. Forest clearance was on the verge of approval, but before that they decided to close it down." He said "government was not willing to give 100% clearance to 900 hectares of the forest land that the company wanted to use for mining." Shukla said, "We will talk to the company. There may be some clarity, thereafter." Rio Tinto can only decide on the third party to carry out mining operations at Bunder as it hold mining lease. Final clearance of mining lease is given only after environmental clearance. Forest clearance was on the verge of approval, but before that they decided to close it down |
| Country | India , Southern Asia |
| Industry | Mining |
| Entry Date | 02 Sep 2016 |
| Source | http://timesofindia.indiatimes.com/city/bhopal/Rio-wants-third-party-for-mining-Bunder-diamond-mine/articleshow/53893110.cms |
