Commodity Online
BANGALORE: A top Indian mining expert says the Geological Survey of India has identified gold deposits in over 100 places across the country.

S K Bhushan, former Deputy Director-General of the Geological Survey of India, said that gold deposits had been identified in over 100 places in the country, most of them being in the southern state of Karnataka.

Last year, India's Department of Mines and Geology recommended to the government seven of the 23 applications from 14 companies, including four MNCs, it received for gold mining in Gadag, Chitradurga, Raichur, Kolar, Belgaum and Gulbarga districts in the country.

India plays a dominant role in processing and consumption of gold and diamonds. But mining of gold and diamond in India is amongst the lowest in the world. India imports gold and rough diamonds along with other precious metals. Gold is purchased from countries like Switzerland, South Africa, Australia, UAE, etc and rough diamonds are sourced from Belgium, UK, Israel, UAE, etc.

India currently produces hardly 0.4% of its gold consumption despite having 9% of global gold reserves under the country’s land mass. Though private entrepreneurs have come forward for reconnaissance, hardly less than 1% of them have come up to mining stage. This is mainly for want of latest technology, high risk capital etc. The government is also formulating a new mining policy to boost exploration of gold and diamond deposits and cut down the country’s over-dependence on imports.

India is all set to go for a gold hunt now. Concerned over its increased dependence on bullion imports, government of India recently asked Geological Survey of India (GSI) to tap the country's potential to dig out gold and diamond reserves spread over several states.

India is estimated to have 20,000 tonnes of gold and diamond reserves spread over several states. The Indian government has asked GSI to explore additional reserves of gold and diamonds in Andhra Pradesh, Karnataka, Madhya Pradesh, West Bengal, Rajasthan, Bihar and Chhattisgarh.

India has been the top importer of gold for several years and the Indian government is concerned over its over-dependence on imports for its bullion needs.

The concern increased during the recession time when prices of gold shot up beyond $1,000 per ounce in the international markets. Moreover, gold has become the safest have available for investors at present.

The government has given GSI three years to explore the possibilities to tap the gold reserves. Now, India is estimated to have 14,000 tonnes of gold and diamond reserves which should be accelerated by 20,000 tonnes in next three years.

The government has also accorded the public sector company Hindustan Copper Ltd to diversify into gold and diamond mining in collaboration with leading foreign companies through setting up of joint ventures.

The overseas firms that are in talks with the government for gold and mining exploration include Indogold, Anglo-American Gold Mining, Monarach Gold Mining, De Beers India Ltd, ACC Rio Tinto Exploration Ltd and BHP Minerals.

The Indian government is taking all initiatives to channelise efforts in unearthing high value minerals like gold and diamonds. India imports Rs 65000 crore worth gold per annum as against Rs 75000 crore of diamond imports.

India currently produces hardly 0.4% of its gold consumption despite having 9% of global gold reserves under the country’s land mass.

Foreign companies rarely come to India because they cannot sell the data they map and can only utilise the information if they venture into mining themselves. Under the existing rules if any entrepreneur invests money and finds gold, then he must apply again for mining.

However, the new mining policy is expected to open up the mining sector for foreign investment. Under the new rules, approvals for most minerals must be made in about a year or be automatically referred to a tribunal.

International gold mining companies are looking for tying up with gold exploration firms in India to form joint venture and launch new exploration projects.

Southern India’s Deccan region has been surveyed as having one of the richest deposits of the yellow metal.