The company said the closure was necessitated by weak volcanic rock above the ore deposit which allowed water to flow into the mine.

FORBES: The perils of mining

Discovered in 2004 by Rio Tinto, the Bunder deposit is estimated at 37 million tons of ore containing 27.4 million carats, a volume that would place Madhya Pradesh in the top 10 diamond producing regions of the world.

FORBES: Rio Tinto Celebrates India's Bunder Diamond Mine with Unique Jewels

The Hajigak deposit contains an estimated 1.8 billion tonnes of iron ore, with an iron concentration of 64%, the mines ministry said in a statement.

BBC: Indian consortium wins $10bn Afghanistan mines deal