Deccan Gold Mines on Monday said it has signed an agreement with diamond mining firm De Beers India, which will allow De Beers to mine diamonds in Deccan.
The agreement also allows Deccan to mine gold and other minerals in De Beers mines in India with option of either firm holding a 95 per cent stake in a new company to be formed for the venture, Deccan Gold managing director Sandeep Lakhwara said.
He said exploration data would be exchanged between the two companies on areas that have been relinquished by the other.
Deccan has about 30 exploratory licenses and has applied for 7 to 10 prospecting licences in an area of 300 square kms in Andhra Pradesh and Karnataka.
Lakhwara said the firm was likely to spend Rs 6,000 per sq km for exploration and the amount would be much more for drilling. The number of licences held by De Beers was not disclosed in the meet.
"De Beers seeks to bring to partnerships, such as the joint venture with Deccan Gold, the company's full range of skills and talents developed throughout the world in diamond exploration and analysis," De Beers India exploration manager Alan Campbell said.