With gold prices hovering over $800 an ounce, the Centre has decided to revive the Kolar goldfields of Bharat Gold Mines Ltd (BGML) in Karnataka. The government is proposing to firm up a joint venture to start mining operations.
The government had decided to wind up BGML in 2001, as mining operations in Kolar were found to be economically unviable. Prices of gold price at that time were $300 per ounce and the volume of mining was a meagre 100 kg per annum.
Following the closure of BGML, all the employees were retrenched. The government was initially mulling to dispose of all its assets, including land, buildings, equipment and mining dumps. However, with prices of gold touching $1,000 per ounce in recent times, the Centre has realised that gold mining will be economically viable. Moreover, the Karnataka High Court has directed the government to consider revival of BGML.
The Centre, meanwhile, has appointed the director (finance) of National Aluminium Company, BL Bagra, as the new managing director of the BGML. Bagra will function as the managing director in addition to his present assignment at Nalco.
Bagra, who has three decades of experience in mining, transport and power sectors, is confident of revival of the closed PSU.
“Mining at the Kolar goldfields will be viable as gold prices are now ruling at $780 per ounce,” Bagra told FE . “But, mining requires critical inputs like technology and skilled manpower.” According to him, with new technology, gold could now be recovered from huge mining dumps accumulated for over a century.