Diamond miner Rio Tinto Diamonds is expected to launch a pre-feasibility study at its Bunder diamond mine in Madhya Pradesh, India. According to Rio Tinto Managing Director Bruce Cox, the study will commence by 2010, and the company will invest some $75 million in it.



Diamond miner Rio Tinto has invested over $20 million in the exploration for diamonds in India in the past five years, and Cox said that the diamond mine is expected to produce up to 3 million carats a year.



Cox told Easy Boruse that "India's disposable income is rising, making it a good potential market for diamond sales.”



According to Vikram Merchant, manager of Rio Tinto Diamonds' representative office in India, the demand for diamonds in India is expected to gain 15% by 2020. Rio Tinto currently sells some 10% of its diamonds to India itself.