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GOLD MINING AND EXPLORATION
For 36 years (1957-1993), the mining of gold was nationalised under the Mines & Minerals (Regulation
& Development) Act 1957.
In line with the Indian government’s policy of economic deregulation initiated in 1991, a new National Mineral Policy
was announced in March 1993. Alongside 12 other minerals, the mining of gold was liberalised to include private
initiatives.
The new policy is designed to encourage the development and exploitation of the country’s mineral resources, focusing
on those minerals, such as gold, where there is a disparity between domestic supply and demand.
Although current annual gold mine output is only around 2 tonnes, there are many gold exploration projects. More than
20 million tonnes of proven, probable and possible gold ore reserves have now been identified.
PRIMARY GOLD PRODUCERS
The original Act, renamed the Mines and Minerals (Development and Regulation) Act 1957, was amended in
January 1994 and December 1999.
Restrictions on foreign equity participation have been removed. More powers have been given to State governments to
grant, renew and transfer mineral concessions. Area restrictions have also been liberalised to apply to a single State, not
the country as a whole. For example, in each State, a Reconnaissance Permit can now cover 10,000 square kilometres, a
Prospecting Licence 25 square kilometres, and a Mining Lease 10 square kilometres.
Two companies mine primary gold in India. The mines are located in two States in the south: Karnataka and Andhra
Pradesh.
The Hutti Gold Mines Co Ltd (HGML)
Established in 1947, but known as Hutti Gold Mines since 1956. An undertaking of the Karnataka State Government under
the administrative control of the Department of Commerce and Industry.
Mines: Located in Karnataka. Hutti (in the Raichur district) and Mangalur (in the Gulburga district).
Annual gold output is around 2 tonnes.
M/s Bharat Gold Mines Ltd (BGML)
Incorporated in 1972. A Public Sector Undertaking under the administrative control of the Ministry of Coal and Mines.
Mines: Located in the Kolar Gold Field in Karnataka, and in the Anantapur and Chittoor districts of Andhra Pradesh.
Current annual gold output is less than 100 kg, following the closure of several mines in the Kolar Gold Field in 2000.
SECONDARY GOLD PRODUCERS
Two other companies produce gold as a by-product from copper slimes and concentrates. The smelters are
located in Bihar in the east and Gujarat in the west.
M/s Hindustan Copper Ltd (HCL)
Incorporated in 1967. A Public Sector Undertaking under the administrative control of the Ministry of Coal and Mines.
Smelter: Located at Ghatsala in the Singhbhum East district of Bihar.
Annual gold output, as a by-product of copper slimes, has ranged between 400 - 700 kg.
Indo-Gulf Corporation Ltd (Birla Copper)
Part of the Birla Group of companies. The smelter, commissioned in May 1998, is located at Dehej in the Bharuch district
of Gujarat.
Annual gold output, as a by-product of imported copper concentrates, was 5.1 tonnes in its first year of production
(2000-01).
AN INTRODUCTION TO THE INDIAN GOLD MARKET 163