Rio Tinto Ltd
(ASX:RIO) is planning to invest $532 million in a diamond mining project in India, according to reports.
The Australian newspaper says an official at the federal mines ministry has revealed that the south Asian nation will soon approve a mining lease for the Rio Tinto Exploration India unit for its Bunder diamond mining project in the central state of Madhya Pradesh.
Sources say India has been on the hunt for investments from global miners following concerns that only 10% of the country has been explored for its mineral wealth.
India currently relies on rough diamond imports to meet demand from its gems and jewellery industry, but hopes that attracting global miners to the country will reduce its dependence on other nations.
Production is believed to be scheduled to start in 2016.
Rio Tinto posted a profit of $5.43 billion for 2009.
