State-run National Mining Development Corp (NMDC) plans to produce close to 100,000 carats of diamonds from the Panna diamond mines in Madhya Pradesh by 2010-11, Steel Minister Virbhadra Singh said here Wednesday.

The Panna mines were reopened this month after being closed for four years over environmental issues. NMDC, a state-run unit under the steel ministry, extracts minerals across the country.