LONDON (Commodity Online): Nations which are known for its mineral richness in the recent years witnessed a surge in mining operations due to the increasing prices of various metals.

One metal which every mining firm wanted to dig more is Gold now. The rising prices of gold has lured almost all gold mining companies to increase their production.

Several global firms increased their operations in South Africa and Zimbabwe. Chile also wanted to increase its Copper mining but because of the recent earthquake could not do so.

Zimbabwe is one nation almost all mining companies now want to invest money because of that nation’s rich mining options like gems and gold.

However another nation which is trying to cash in on the gold rush is India now. While moves are afoot to revive state-owned Bharat Gold Mines (BGML), which was closed since 2001, Deccan Gold Mines, the country’s only listed private gold miner, is also stepping on the gas to start gold production.

Also, the Karnataka sate government-owned Hutti Gold Mines (HGML), the only producer of gold in India, is planning to expand production through joint ventures, a report in the country’s business newspaper Economic Times said.

India’s mines ministry is seeking Cabinet approval to revive BGML as the ministry expects high prices to boost margins. The plan is based on making BGML, a subsidiary of state-owned metals major, National Aluminum Company, or Nalco. The ministry’s move follows a Karnataka High Court directive that suggested revival of BGML due to the present Gold market scenario.

Since BGML was closed down in 2001, when the cost of extracting an ounce of gold became higher than its market price, the precious metal has appreciated nearly five-fold. Prices are now at over Rs 19,000 per 10 gm, compared with Rs 4,800 at the time of BGML’s closure.

Deccan Gold is confident on Ganajur in Karnataka where it has initiated third phase resource drilling. Based on the results, it will commission a pre feasibility study to estimate mineral reserves and ascertain its economic viability.

Zimbabwe produced 4.03 tonnes of gold in the first half of the year and is on course to double last year’s output despite regular disruptions to Electricity supplies.

Gold production plunged to a record low of 3 tonnes in 2008, as mines choked from inflation of 500 billion percent as well as acute foreign currency and electricity shortages. Last year saw a marginal improvement to 4.9 tonnes.

Most mothballed mines have come back into production and the chamber of mines says gold output for 2010 could be higher than the initially projected 7 tonnes.

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