rediff.com
rediff.com
Business Find/Feedback/Site Index
      HOME | BUSINESS | AFP | REPORT
June 2, 2000

NEWSLINKS
Y2K BIZ FEATURES
INDIA & THE W.T.O.
NEW GOVERNMENT
SPECIALS
INTERVIEWS
COMMENTARY
CREDIT POLICY
BUDGET 1999-2000
USEFUL INFO
ARCHIVES
SEARCH REDIFF

De Beers, RioTinto eye mineral-rich Karnataka

Diamonds are foreverDiamond giant De Beers and Anglo-Australian miner RioTinto are eyeing the mineral-rich Karnataka as a source for diamonds and metals, an official said Friday.

Email this report to a friend "De Beers have approached us to mine our diamonds and other stones. They are also planning to do retailing of their gems in India through exclusive showrooms," B S Patil, Principal Secretary in the Karnataka state's industry department, said.

"The government may allow a majority stake for the company, the world's biggest diamond miner, if it so desires," Patil said, referring to the South African firm.

He said RioTinto, the world's number two mining company, had also approached the state, which will unveil a new mineral policy within a week.

The allure of precious gemsBoth the companies would be represented at a two-day global investors meet opens in Bangalore next week.

Karnataka is rich in diamonds, gold, silver and platinum.

India threw open the mining sector to private companies for exploration six years ago. Some Indian private companies are mining in the state and paid royalties of 25 million dollars to the Karnataka government last year.

"We do not know as yet how much reserves we have. Only when these companies come in and study the prospects can we make out the exact details.

"But surely, once they enter, the royalty amount to the government will triple in five years," said M Basappa Reddy, director of the department of mines and geology.

Diamond jewellery: eternal valueReddy said the government would enforce strict environmental guidelines before granting mining licences to private players.

The state government is planning to give out 10,000 square kilometres of prospecting areas on a "first-come first-serve" basis to private companies.

"It may take five to seven years for the companies to mine diamonds finally as the initial prospecting licences are valid for a period of three years and then the mining lease is granted," Reddy said.

Back to top
©AFP 2000 All rights reserved. This material June not be published, broadcast, rewritten or distributed. All reproduction or redistribution is expressly forbidden without the prior written agreement of AFP.
Tell us what you think of this report
HOME | NEWS | BUSINESS | MONEY | SPORTS | MOVIES | CHAT | INFOTECH | TRAVEL
SINGLES | NEWSLINKS | BOOK SHOP | MUSIC SHOP | GIFT SHOP | HOTEL BOOKINGS
AIR/RAIL | WEATHER | MILLENNIUM | BROADBAND | E-CARDS | EDUCATION
HOMEPAGES | FREE EMAIL | CONTESTS | FEEDBACK