Mining giant Rio Tinto's prospects for getting an in-principle approval for its diamond mining project in Madhya Pradesh, India, are favorable, the Business Standard reported Sunday.

"The Madhya Pradesh government has already recommended mining lease to Rio Tinto's Bunder project," a senior Mines Ministry official told the paper.



Rio Tinto India Managing Director Nik Senapati added: "We are happy to hear that mining concession is at the most advanced stage. We are looking forward to getting the environment clearances among other things soon. We are excited to be working in India."



After the Mines Ministry approves the recommendation from the state for granting the lease, Rio Tinto will have to obtain environmental and forest clearances from the relevant government bureaus before starting mining. Rio Tinto is planning to invest around Rs 2,200 crore in a phased manner in the project, the Ministry official said.



The Bunder project in Chhattarpur district of Madhya Pradesh has estimated reserves of 37 million ton. At 0.7 carat per ton, the project would give 27.4 million carats of diamond. A The mining project is being undertaken by the company's subsidiary Rio Tinto Diamonds and investment would be made through its domestic arm Rio Tinto Exploration India.