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MSPL plans to commence gold mining at Gadag in Karnataka by August. The company, through its subsidiary Ramgad Minerals and Mining, is to invest Rs 300 crore for infrastructure development to roll out the business.
Speaking to Business Line here on Wednesday, Shrenik N. Baldota, Executive Director, MSPL, said the company has completed the ground work at the mine after receiving the Government approvals, and production is expected to start from August next year.
“We target to produce one-and-a-half tonnes of gold in the first year of operation. Depending on the progress, we will gradually increase the output,” he said
Gold ore processing plant
The Hospet-based company, which will become the first private sector gold mining company in India, plans to set up a gold ore processing plant at Gadag district, in collaboration with a South African gold mining company. MSPL plans to produce about two tonnes of gold a year through the mine life of 20 years. The mine was allotted to MSPL in 2008.
“The Gadag mine area covers about 10 sq. km. We had to drill every 100 km to explore the quantity of gold content in the ore before it could be mined ,” said Baldota.
Though MSPL has expertise in open cast iron ore mining, it has to gain know-how from foreign companies for underground gold mining. Besides, the company has to process a huge quantity of ore to retrieve the gold content. Given the high gold prices, this would still be a profitable proposition, said an analyst.
The Karnataka Government-owned Hutti Gold Mines in Raichur district is the only operational gold mine in the country. HGML, which was the first Indian company to become the member of the World Gold Council, has two plants in Hutti and Chitradurga district of Karnataka.
Kolar Gold Fields, the once most popular mine operated by the State-owned Bharat Gold Mines, had to wind up operations. China is the world’s largest gold producer, followed by Australia and the US. Last year, China produced 361 tonnes of gold, which was six per cent higher than the preceding year. In 2011, over 1,800 tonnes of gold was mined in the top 10 countries.
>suresh.iyengar@thehindu.co.in
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