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Dwyka joins BHP for diamond hunt in India

Dwyka Diamonds Ltd said on Wednesday it had signed an alliance agreement with BHP Billiton plc/Ltd to explore diamonds in India.

Under a recent shift in Indian policy, exploration of so called "reserved" minerals was now permitted by the private sector, clearing the way for the alliance, Dwyka said.

"India is probably the last great diamond bearing region to remain unexplored, " Dwyka said.

The first diamonds in India are believed to have been found around 3000 BC. A diamond cutting and polishing industry flourishes to this day.

BHP Billiton already is in the diamond business in Canada, where it mined 3.7 million carats last year.

The alliance with Dwyka covers some 55,000 square kilometres of prospective ground in a combination of approved BHP Billiton licences and licence applications, Dwyka said.

BHP Billiton will fund exploration costs via a subscription for Dwyka shares, Dwyka said.

Based in Perth Western Australia, Dwyka Diamonds is focussed on exploration and development of alluvial placer diamonds.

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