Fortune has smiled upon a part-time diamond digger in India’s Panna district as the 19.22-carat stone he found fetched $111,000 (Rs 93,79,360) at the bidding event. It is not the only case: winter 2022 was also successful when a part-time prospector mined a 26.11-carat diamond, which was later sold for $193,000.
A unique government program was implemented in Madhya Pradesh, India; it allows local farmers and laborers to apply for small plots of land leases. The rent of a 25 ft-square patch costs around Rs 200 to Rs 250 (2.40 USD – 3 USD) per year. And once a person or a group is granted the permit, they can excavate and search for diamonds using basic tools. All diamonds found must be deposited with the district mining officer. The government then auctions them, and after deducting applicable taxes and royalties, the proceeds are returned to the finders. This system is a great opportunity for the locals to earn money. In fact, some miners have discovered high-value diamonds, significantly improving their financial situation.
The stone mentioned above was among 29 diamonds sold by the Panna Diamond Office, with other 28 finds collectively bringing in over $28,000. Over the past two years, many of the discovered stones didn’t attract buyers at the quarterly auctions, but the recent event showed the increased demand, drawing large crowds of bidders.
Panna is one of India’s most prominent diamond-producing regions, with around 1.2 million carats of diamond deposits. Due to its rich resources, it has been considered a hub for diamond exploration and mining.
The initiative Shallow Diamond Mining Lease Program was implemented for several reasons, including the following:
- To provide an additional source of income for residents, as many of them struggle with seasonal or low-paying agricultural work.
- To ensure the effective use of the region’s natural diamond reserves and not rely only on large mining companies.
- To provide steady revenue to the government through leasing fees and royalties from diamond sales.
But the desperate hunt for diamonds in Panna reveals other sides of the plight of desperate people. Video report from the ‘The Week’ channel
