Gold & Silver

Gold reserves of more than 3,000 tonnes found in UP Sonbhadra district

Hemai Sheth | | Updated on: Feb 22, 2020
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The Geological Survey of India on Friday discovered gold reserves of more than 3000 tonnes in the Sonbhadra district of Uttar Pradesh, according to media reports.

Geologists have discovered gold deposits in two gold mines with around 3,500 tonnes of gold ore in Naxal-affected Sonbhadra district of eastern Uttar Pradesh, the Financial Express reported.

The two ores are located in Son Pahadi and Hardi Block. According to a GSI official, the deposits in Son Pahadi are approximately 2,943.26 tonnes while the deposits at the Hardi block are around 646.16 kilograms according to an report.

The deposits are worth more than ₹12 lakh crore, the report said.

The Geological Survey of India and the Uttar Pradesh Directorate of Geology and Mining have been working on finding the reserves for over two decades. The GSI had first announced the presence of gold deposits in the region back in 2005. The claims had been confirmed in 2012.

A seven-member team has been set up for the survey. The blocks will soon be auctioned off, Financial Express reported. The auctioning would be through e-tendering as per the media report.

The estimates are approximately five times the current gold reserve of India which is around 626 tonnes.

If the estimates hold true, India would have the second-highest amount of gold reserves in the world after the US which has the largest gold reserve with 8,133.5 tonnes as per the World Gold Council's (WGC) data. Currently, Germany holds the second-highest gold reserve with 3,366 tonnes.

WGC in January had said that there had been a decline in India’s gold demand in 2019 and estimated it at about 690 tonnes, a fall of 9 per cent as per previous reports.

Published on February 22, 2020

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