Gold Mines to Boost India's Bullion Market

Source:

"India plans to revive the world's second deepest mine. . ."

India's plans to revive the world's second deepest mine may be the nation's biggest bid to reign the gold market.

After producing for 121 years, Kolar Gold Fields (KGF) still has reserves that could yield 10 tons of gold per year for 15 years. With gold selling at a record 19,000-plus rupees per 10 grams, it would be a windfall. Last week, the Union Cabinet had cleared the proposal to revive the mines, nine years after its close in 2001, when the mine was declared sick.

The government's decision follows a report by three parliamentary standing committees which states that at least 30 lakh tons of gold reserves lie unexploited in Kolar.

Kolar Gold Fields is situated in the south of Bangarpet Taluk of the Kolar District, Karnataka State.

In 1873, M.F. Lavelle, a resident in Bangalore, applied to the Mysore government for the exclusive privilege of mining in the Kolar district. However, finding that large capital would be required, he transferred all his rights and concessions to the late Major General Beresford.

Major General Beresford formed a syndicate known as the Kolar Concessionaries (now merged into the Gold Fields of Mysore Co.) which gradually acquired the area known as the Kolar Gold Fields.

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