• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes Can LNG Kill Oil?
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 27 mins “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 1 hour CoV-19: China, WHO, myth vs fact
  • 9 hours Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 3 hours Blowout videos
  • 1 day OIL trades as if the virus is a 1 quarter event. As if it's Containable, Reversible and Temporary. Is it ?
  • 23 hours Energy from thin air?
  • 2 days Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 5 hours Natural Gas
  • 2 days Fast-charging, long-running, bendy energy storage breakthrough
  • 2 days Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 8 hours Cheap natural gas is making it very hard to go green
  • 1 day Coronovairus, Phase One Agreement, Lower for Longer
Alt Text

Investors Return To Plowing Money Into Commodities

Commodities are trending once again…

Alt Text

Are We Really Facing A Battery Metal Shortage?

Electric car builder Tesla foresees…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Why Is Rio Tinto Giving Diamonds Away For Free?

It’s not often that quality mining assets come up for sale. And it’s even rarer they’re given away for free.

But news this week suggests that’s exactly what’s happening in one of the world’s emerging diamond hotspots.

India.

Indian government officials said Tuesday that Rio Tinto is about to make an unprecedented move with its Bunder diamond deposit. And hand the major project back to the government at no cost.

Mines Secretary Balvinder Kumar told Reuters that Rio Tinto has decided to pull out of Bunder completely. With the major miner electing to return the project to the government, rather than pursue other options for the project.

The move is surprising in the utmost. Given that Rio Tinto says it has spent a full $90 million exploring and delineating a diamond deposit at Bunder over the past 14 years.

That work has been reasonably successful. Defining a diamond resource at Bunder that runs some 34.2 million carats — putting the deposit on par with some of the world’s top mines.

And yet Rio Tinto is now walking away. Not selling, not joint venturing, not starting a strategic review.

Which leads to the question: why?

Related: Why Wall Street Is Throwing Billions At The Permian

Part of the answer may lie in the politics of developing a mine in India. After all, the fact that the Bunder project has now been running for 14 years speaks to the slow pace of work in this part of the world.

And government officials themselves pointed out this week that the project is located in a forest area important to tigers and other wildlife. Meaning that environmental concerns could be playing a part in Rio’s decision to exit the project.

All of which seems to strike a cautionary tone for large-scale mining in India. Watch to see what the next steps are for the project — with officials saying they will now seek to auction the property, or allocate it to an Indian state mining company. A bid from a foreign miner would be a reassuring vote of confidence here.

Here’s to giving it away now.

By Dave Forest

More Top Reads From Oilprice.com:

 




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Krishnan on January 07 2017 said:
    I was associated with the project since inception to 2012. I had predicted long back that Rio will never develop this project; main reason - the deposit was never considered a tier 1 project. They never pursued clearances in earnest and made some wierd applications too. Despite all this I believe the government had nearly finalised the clearances in 2015 but Rio was possibly not interested. I believe this was more a economic decision

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News