Step 1: Locate Panna.
Panna is a district in Madhya Pradesh, known for its mining activity.
Step 2: Identify the mineral.
The Panna mines are famous for producing diamonds and are among the very few diamond bearing areas in India.
Step 3: Why this matters.
These mines have been worked for centuries and remain important for India's limited diamond output.
Step 4: The final answer.
The correct answer is diamond.