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DIAMOND MINING PROJECT – PANNA – AN OVERVIEW
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Panna Diamond Area
Panna Diamond Area is located in North M.P., at the contact of Bundelkhand and Vindhyan region. Panna is surrounded by Chhatarpur in the West, Damoh in South-West, Satna in the East, Katni in the South and Banda district of U.P. in the North. It is about 200 km. by road from Jhansi, which is a prominent Railway terminal of Central Railway.

Majhgawan is about 20 km away from Panna and approachable by an all–metal road from Panna & Khajuraho by 14.3 Kms. long road diverting at 5 Kms. stone on Panna - Chatarpur road. The nearest airport is Khajuraho which is about 60 km. from Majhgawan, while the nearest rail-head is Satna which is about 92 km. away.

Panna has been famous for diamonds since long and the diamond belt covers about 1000 sq.kms. area in the Panna district. Small-scale diamond mining activity was extensive in gravels and exposed conglomerates in the later part of the 16th century.

About the Diamond
The word diamond comes from the Greek term adamas, which means “unconquerable”. Diamond occupies a unique place among the precious stones by virtue of its lustre, high refractive index, hardness, resistance to mechanical and chemical changes and its rarity in nature. Diamond’s superior properties and hardness has earned this mineral the highest respect in both industry and jewellery. Today, 75-80% of the world’s natural diamonds are used for industrial purposes and 20-25% for gemstones. Diamond’s thermal conductivity is four times greater than copper. Diamonds were not used as gems in European jewellery until the late 13th century, while a French law of the time decreed that only the king could wear them. In the symbolism of gemstones, diamond represents steadfast love and is the birthstone for April.

Diamond Sources
As a primary mineral, diamond occurs only in olivine-rich peridotites, notably kimberlite, where it is associated with olivines, magnetite, and phlogopite. Substantial amounts of diamond are also mined from both recent and ancient (consolidated conglomerates) placer deposits as diamonds. Other mantle minerals are dispersed into rivers as they tend to accumulate, because they are heavy, in between pebbles and boulders forming the gravel bed of a river. These deposits are called alluvial gravels, (secondary sources). Micro-Diamonds may even be found in meteorites.

History of Diamond
Appreciation of its beauty has been known since its discovery in India, prior to 400 B.C. India has had a long history of diamond mining, produced diamonds of historical fame and was the sole producer of diamonds until 1725. In the alluvial gravel deposit of Golkonda, many diamonds of historical fame were produced.

After the discovery of diamond deposits in Brazil in 1725, South Africa came into prominence for its diamond deposits in 1870s. After the discovery of Kimberley diamond bearing pipe, it was known how diamond are formed. The deposits of Australia, Russia and most recently of Canada were discovered with modern methods of exploration. Today diamonds are mined in some 25 countries on every continent but Europe and Antarctica. The top seven producing countries, that account for 80% of the world’s rough diamond supply, are Australia, Botswana, Zaire, South Africa, Russia, Angola, and Namibia.

About 70% of the world Diamond production is cut and polished in India. About 185 million carats diamonds valuing about Rs. 33,000 crore were imported and about Rs. 40,000 crore worth of diamonds were exported after cutting and polishing in 2003-04. But in diamond mining, India is nowhere. Majhgawan is the only organised and mechanised diamond mine in Asia. A number of Kim-berlite pipes were found in Andhra Pradesh, but found to be non-economical. The Government of India is trying to explore the new deposits by involving global companies like Rio-Tinto, BHP and NMDC, which are involved in extensive exploration for diamond deposits in India.

A. K. GUPTA, AGM, R. K. GARG, Dy. Manager Geol., NMDC LTD.
Chronology :-  
  Majhgawan Diamond Pipe
Year
Capt. Franklin discovered the Majhgawan diamond deposit
1827
Established as Kimberlite pipe by Sinor 1930
Preliminary investigation by GSI and IBM 1956-59
Diamond Mining by M/s. Panna Diamond Mining Syndicate Upto 1959
Taken over by NMDC
Dec.’1959
Approval of two Project Reports, one for Ramkheria graveldeposit for 11,500 carats and the other for Majhgawan pipe for 12,000 carats per annum. 1967
Majhgawan Mine attained full capacity
1971-72
Ramkheria mine closure
1979
Mine and Plant upgraded for 15000 carats production
1984
Mine and Plant upgraded for 18500 carats production 1991-92
Mine and Plant upgraded for 40000 carats production
1994
Installation of X-ray sorter
1999
Mine and Plant upgraded for 84000 carats production Jan.’ 2001

Majhgawan Mine
The Majhgawan pipe is surrounded on all the sides by the Baghain sandstones of Kaimur series which belongs to the Vindhyan system. The diamond occurs in the Kimberlitic pipe, which is an intrusive into above formation. Kimberlite pipe in Majhgawan is elliptical in shape whose longer axis is 320 meters. Diamond occurs as disseminated form in kimberlite pipe. The distribution of diamond in the pipe is not homogeneous. The average incidence of diamond in the pipe is about 10 carats per hundred tonne of kimberlite.

Reserves

Depth
from the surface
(in
meters)
Up to RL
(In meters)
Category
of
Reserves
Estimated
Initial
Reserves (Million
Tonnes)
As on 31 / 03 / 2004
Worked So far (Million Tonnes) Balance reserves of ore (in million tones) Balance Diamond Reserves (Lakh Carats)
100
150
200
270
220
170
Proved
Probable
Possible
14.2
18.8
22.4
8.5
8.5
8.5
05.7
10.3
13.9
05.7
10.3
13.9

Mining
Mining is completely mechanized. Development of benches, drilling operation, loading of blasted ore by shovels into dumpers and transportation of the ore to stock/processing plant are the main operations. At present mining is done by development of 10-meter high benches operating from center and then moving towards the periphery. A hydraulic shovel of 4.1 cubic meter bucket capacity and 3 nos. of 40 tonnes capacity dumpers are being used and ore is stockpiled in different stocks. Front-end loaders of 3.15 cubic meter capacity are used to reclaim the ore from stock-pile, blending and feeding to a ROM hopper. A similar hydraulic shovel and dumper are under procurement. The open pit has gone down to a depth of about 80 meters i.e. at 290-meter R.L. Waste excavation is done in order to push up lower benches in a phased manner. A gradient of 1 in 16 is maintained for the main haul road. Two magazines to store 18.85 tonnes of explosive are established for the mines.

Method of Beneficiation
The treatment process of ore consists of crashing in two stages and reducing the ore from +1.5 mm to - 20mm fraction. -1.5mm size fraction is pumped in slurry form to tailing pond.
The -20 mm material is collected in two hoppers of each 50 tonnes capacity. The ore from the feed hoppers is directly taken to the HMS plant through vibrating feeders (preparation screens).
After being subjected to HMS the material separates into two products floats, which are rejects and diamond bearing concentrate.
The concentrate obtained from HMS plant is subjected to drying in rotary driers and later screened to 4 different sizes in a triple deck vibrating screens.
These concentrates are then passed through a 2-stage magnetic separator turn-by-turn. Diamonds, being non-magnetic, get separated from the concentrate while the magnetic portion of the concentrate gets rejected.
A conveyor carries these concentrates to X-Ray sorter where they are passed through two stages of the X-Ray beam and grease table and diamonds are recovered in locked pockets.
Under tight security the diamonds are taken out from the pockets of X-Ray sorter and are transported to classification room where assortment and valuation of diamonds is done.

Diamond Categories
The diamond categories and their abundance at this mine are as under,
Gem variety 28%
Off colour variety 38%
Dark brown or industrial variety 34%

Marketing of Diamonds
The value for a diamond is assigned on its four qualities, popularly known as four “Cs”. They are colour, clarity, cut, and carat.

The gem variety is the one that is costliest. In the international market the gems are categorized under grades D, E, F, G, H, ....Y, Z. The variety of D, E, and F are presently not much available at Indian mines. At Panna Project, the diamond grade that is mostly available is “G” grade. Higher the grade of the diamond, lower its value.

The impurities in a diamond lower its value. The impurities are dependent upon the inclusions. The gradation of diamonds depending upon inclusions in them is as under.

1. VVSI (Very very small inclusion.)
2. VSI (Very small inclusion)
3. SI (Small inclusion)
4. IMP (Impairing purity)

Diamonds of dark brown variety are used for industrial purposes. If the diamonds are very small in size and can’t be used for any purpose, they are powdered and used for diamond polishing works.
After sorting diamonds into the above three varieties, the lots are marketed by public auctioning through tenders at major cities (mostly Mumbai). Some auctions are also held at Panna. N.M.D.C is not undertaking the work of polishing the diamonds. The diamonds are subjected to acid wash and they are sold.

Big Size Diamonds Produced from the Mine

SI. No. Date Weight (in carats)
Gem Off colour Dark Brown
1.
24.05.1989     32.36
2.
26.12.2003 30.33    
3. 27.10.1980 29.25    
4. 15.03.2000     29.00
5. 04.08.2001     25.82
6. 22.01.2003 23.82    
7. 10.11.1999 23.41    
8. 08.02.2001     22.98
9. 05.11.1997 22.44    
10. 08.12.2000 21.49    
11. 11.01.1996 21.46    
12. 03.09.1979 21.29    
13. 28.02.1997 21.24    
14. 13.04.1980 20.97    
15. 31.12.1984 20.88    
16. 01.06.1997 20.52    
17. 01.10.1996 20.43    
18. 28.12.1986 20.12    

NMDC’s Contribution in different Fields for the Development and Welfare in the Area

1. Training Facilities
Training to its employees as well as to the local students of different trades like ITI, Diploma and Degree holders.
Organised external training programmes for workmen as well as officers, for their skill improvement.
Trainings around 30 apprentice trainees, under the Apprentice Act-1961
Vocational training to approximately 20 students of different educational institutions.

2. Peripheral Development
With the commencement of the Project, there has been a positive impact on the socio-economic status of the area.
Project activities have increased the literacy rate and employment potential around the area.
Approach road with bridges from Manour on NH-75 via Majhgawan to National Park Gate was constructed and is being maintained by NMDC connecting a number of villages on the way.
Free transport facility to Panna.
A 20-bed provided hospital with OPD Medical Facilities including delivery cases for nearby villagers.
Construction of Community Centre and internal roads for Hinota Village.
Drinking water treatment plant with supply of water to nearby villages.
Project has two full-fledged schools at Majhgawan for the children of our employee and villagers. Even the children from Panna town come to DAV Public School for education upto 12th.
Play ground and park are constructed for children.
Besides the above, Post office, Banking, Weekly market and LP Gas services facilities have also been provided.

3. Ecology, Environment and Pollution Control
Steps have been taken to control all types of pollution to lower / nullify the adverse impact on the surrounding biotic and abiotic environment.
Afforestation, About 1.30 lakh plants have been planted so far in 56.45 hect. area inside & outside the lease area to develop a green belt around the mine to control dust, a roadside plantation to develop aesthetic beauty in the area and to stabilize the dumps and a specific plantation to develop the natural ecosystem.
Tailing dam for the treatment of slurry water from the processing plant.
Construction of 09 Check dams on Spillway meeting Kaimason nalla.
Effluent treatment Plant for workshop effluent.
Soak pits & Septic tanks for the treatment of domestic and Sewage Treatment Plant
Toe wall along the coarse tailing dump
Desilting of Tailing dam and Kaimason nalla
Stabilization of overburden and coarse tailing dump.
Generation of awareness in the employees and local people.
Water sprinkling on haul roads and dust suppression in the plant.
Received various awards from Indian Bureau of Mines, Jabalpur for the performance in environment protection and mineral conservation during the last 10 years.

Utilization of Kimberlite tailing waste after extraction of diamonds
NMDC has carried out research through R&D Lab, Hyderabad associating scientific institutes like Central Road Research Institute, New Delhi, National Council for Cement and Building Material, New Delhi and various agriculture research stations situated at Ambikapur, Cuttack, Jagdalpur, and Raipur.

The following uses of kimberlite tailing waste have been established :
In Road Making
  » Kimberlite tailings mixed with soil and murram as sub-base up to thickness of 210mm.
  » Kimberlite mixed with bitumen for black topping and seal coat on WBM roads.
In manufacturing of tiles
  » Glaze for tiles
  » Body of ceramic tiles
  » Body of mosaic tiles
Manufacturing of hollow and solid bricks by mixing with cement.
Use of kimberlite fines for improving crop yields when used in acid soils, light textured soils (sandy loam soils) and heavy black soils.
Recovery of magnesium and magnesium salts.
Application in Sinter as Flux in Steel Plants.
To remove excess fluoride in drinking water by manufacturing filter candles.
Extracted pigments from kimberlite tailings used in painting industry.

Apart from kimberlite tailings waste, over burden in the form of good quality sand stone in sizes up to 1 m3 blocks removed as overburden from mine, are also available in the stock. This is also waste material. This can be crashed to required size for use in building construction, road making etc.

Financial Performance
Panna Diamond project is making profit consistently since 2000-01.
(In Crore Rs.)
Expenditure Head 1999-00 2000-01 2001-02 2002-03 2003-04
Turnover 20.16 24.48 33.78 31.17 36.19
Profit before Tax -4.15 2.75 6.32 6.52 3.15

Contribution to the Government by DMP, is about Rs.830.27 lakh as Royalty, electricity bill, sales tax, Income Tax, property tax etc. NMDC’s expenditure for Community Development & Welfare Activities is around Rs.60 lakh per year, other than capital expenditure on this account.

Employment Statistics
» Total strength of employee is 449 persons.
» 41% belongs to SC, ST and OBC category.
» 75% employees belong to MP.

For further information contact
Mr. A. K. Gupta / Mr. R. K. Garg
N.M.D.C. Ltd., Panna Diamond Mining Project,
Panna-488 001. (M.P.)
Tel. : 07732-271474