The Hindu Business Line : India has conducive environment for gold mining, says Minister

Weighing potential: Mr Greg Wilkins, Chairman, World Gold Council, Mr T. Subbarami Reddy, Union Minister of State for Mines, Mr James Burton, CEO, WGC, and Mr Sanjiv Batra, MMTC, CMD, at a meeting on `The potentials of gold mining industry in India' in the Capital on Thursday. - Kamal Narang

Our Bureau

New Delhi, March 13

Stating that India has a conducive environment for the mine and mineral sector, the Minister of State for Mines, Mr T. Subbarami Reddy, called upon the World Gold Council to invest in the gold mining sector.

“The consumption of gold is at an all-time high in India. The Government has taken a constructive approach to fuel growth in the mining sector and is looking to open investment in gold mining,” he said, adding that the WGC should ask entrepreneurs to bring in technology to promote investment in the sector.

Speaking at the meeting, Mr James Burton, Chief Executive, WGC, said, “We hope the policies in the sector will be favourable for it to flourish in India.”

The price factor

On the fluctuating gold prices, he said the drop in the dollar rate is a major contributing factor besides the US sub-prime crisis. He, however, declined to comment on whether the prices will stabilise.

Mr Burton also noted that the WGC is looking to cross-list its New York-listed StreetTRACKS Gold Shares, a gold exchange-traded fund (ETF), in Japan and Hong Kong by September.

Mr Sanjiv Batra, Chairman of MMTC, said the potential of gold mining is very good in India. However, foreign companies in the sector were seeking clear guidelines regarding leasing agreements. He also said the Government is also looking at setting up a regulator on the lines of the telecom industry.

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