India Plans To Revive Kolar Mines In Karnataka That Have Gold Reserves Worth $ 2 Billion!
In order to cut down on its gold imports, India is mulling to revive a cluster of its colonial era gold mines. Shut down 15 years ago, the digging at mines might start once again because gold deposits worth $2.1 billion.
In order to cut down on its gold imports, India is mulling to revive a cluster of its colonial-era gold mines. Shut down 15 years ago, the digging at mines might start once again because gold deposits worth $2.1 billion are yet to be excavated.
Reuters
Karnataka State Run Mineral Exploration Corp Ltd has already started exploring the reserves at Kolar Gold fields to get estimates of the deposits, according to three government officials and a briefing document prepared by the federal mines ministry that was seen by Reuters.
The ministry has also appointed investment bank SBI Capital to assess the finances of the defunct state-run Bharat Gold Mines Ltd, which controls the mines, and the dues the company owes to workers and the authorities, the officials, who are involved in the process told Reuters.
AFP
India is world¡¯s biggest gold importer behind China and spends more than $30 billion a year on gold imports, the second most imported item after crude oil.
Gold plays an important role in Indian culture, serving the primary way as saving apart from being the biggest item to be bought for marriages etc. The demand for gold in India peaks around November-December which is the wedding season.
Reuters
Balvinder Kumar, the top civil servant at the federal mines ministry, said getting the Kolar mines going would help the government bring down its import bill. Initial Mineral Exploration Corp estimates show reserves worth $1.17 billion in the mines, according to the briefing document.
Another $ 880.28 million in gold-bearing deposits is estimated left over in residual dumps from previous mining operations.
"These mines have huge potential," Kumar said, adding that the initial estimates were conservative.
"We feel there is more. The whole belt has a lot of potential in terms of untapped gold."
Reuters
India roughly imports around 900 tonnes to 1,000 tonnes per year, but local gold output is miniscule, at 2 tonnes to 3 tonnes per year.
