Monday 14 September 2015

Government To Resurrect Country's Dormant Gold Mining Industry

The ministry of mines has planned to resurrect India's dormant gold mining industry. "We're going to auction threefour gold mines in Karnataka, Madhya Pradesh and Rajasthan in two-three months. With amendment of the Mines and Minerals Development and Regulation (MMDR) Act, we are pursuing with the states to move ahead with these auctions," Union Mines Secretary Balvinder Kumar told Mail Today.

India is the world's leading importer and consumer of gold but policy handicaps and inadequate investments and technology mean vast gold ore reserves have largely remained unexplored. For example, despite geological similarity with India, Australia mines 280 tonnes of gold a year. An increase in gold production will cut India's rising gold import bill and boost economy.

"Gold mining in India is negligible. Kolar Gold Fields was our main project but that's been defunct for 14 years now. We're trying to revive it, but the idea also is to tap unexplored sites," Kumar said.

India's gold production dropped 8 per cent to 1.43 tonne in 2014-15 compared to 1.56 tonne in 2013-14 financial year. Gold production from Hutti Gold Mines Co. in Karnataka and Manmohan Industries in Jharkhand was 1.43 tonne in 2014-15 as against 1.56 tonne. In 2014-14, gold import stood at 782 tonnes, while for 2013-14 it was 661.71 tonnes.

Steps such as second-phase mine construction at Hutti gold mines have been taken for increasing the production of metal. At the Hira-Buddini and Uti gold mine, the second phase of mining by shaft sinking and mine development is in process.

Overall, the 12 mineral producing states will put 82 mining blocks containing various minerals for auctioning by October-November this year, Kumar said. The entire process will take 2-3 months.

Source:indiatoday.intoday.in



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