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The Union Ministry of Mines has asked Mineral Exploration Corporation Ltd (MECL) and Geological Survey of India (GSI) to “re-evaluate the (gold tailing) dumps and mines” of Bharat Gold Mines Ltd (BGML).
The Ministry has re-initiated move to decide on the future of the Government-owned company in a recent review. It also sought to prioritise actions regarding the non-operational but yet to be wound up BGML.
According to sources, the Ministry decided for a fresh evaluation of its assets.
It also set in motion steps to remove administrative roadblocks and address the legal issues.
With piled up losses, the gold mining company was formally closed in 2001, and all the workers were paid off their dues.
The Union Mines and Steel Minister Narendra Singh Tomar has asked MECL and GSI, the two Government exploration agencies to undertake re-evaluation process.
Incidentally, renewal of one of the principal mining leases of BGML in Karnataka, though expired in 2013, is technically possible.
The Ministry has found out that as the application for it was made in time, under the current legal provision renewal could be had, if BGML fulfils certain conditions.
Global tender BGML, technically a dormant entity, in the past 14 years could not get legal approval for the proposed asset sale through a global tender before formal winding up. Currently, the issues are pending before the Supreme Court. BGML, in 2012, had moved the Apex Court, after a division bench of the Karnataka High Court did not support the global tender for its asset sale and eventual liquidation.
The Ministry is now aiming to have a clear expert opinion on the realisable values of BGML’s assets, such as dumps, residual deposits, land and mining lease rights.
The special leave petitions — one from BGML and the Centre as well as another from the Bharat Gold Mines United Emplyees’ Association — have sought direction from the Supreme Court on the global tender proposal without conditions.
The current initiatives regarding re-evaluation of assets based on present ground realities, including the gold prices in the international market, would also help the Government to firm up its stance on the legal forms for winding up or any other possibilities.
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