The Rio Tinto diamond company plans to invest some $79 million in diamond exploration and production in India's Madhya Pradesh region, with a focus on Chhatarpur's Bunder mines, Steelguru.com reported.

According to Additional Chief Secretary of Madhya Pradesh Satya Prakash, a formal memorandum of understanding between Rio Tinto and the state government was expected to be drawn up and in effect by October 2010.



Chief Minister of Madhya Pradesh Shivraj Singh Chauhan said that some of the region's rich mineral resources now belonged to Chhattisgarh state, but noted that there were still investment opportunities for the diamond industry, as well as bauxite, aluminium, limestone, and coal mining.

Singh said that Madhya Pradesh was eager to attract investment in mining, power, and infrastructure projects.



Rio Tinto owns Australia's Argyle Mine, one of the world's biggest diamond suppliers and main producer of fancy red and pink colored diamonds.