BANGALORE (Commodity Online): This may be India’s biggest bid to reign the gold market with the government planning to revive the world’s second deepest gold mines in Kolar.

The Kolar mines were declared sick and shut down in 2001. Now the government is planning to revive the mine. After serving the nation for 121 years, Kolar Gold Fields (KGF) still has reserves that could yield 10 tonnes of gold per year for 15 years. With gold selling at a record Rs 19,000-plus per 10 grams, it would be a windfall.

Three parliamentary standing committees constituted in 1994, 1997 and 2000 to explore gold deposits in KGF have now submitted a report stating that at least 30 lakh tonnes of gold reserves lie unexploited in Kolar. Last week, the Union cabinet had cleared the proposal to revive the mines which have been shut for nine years now.

Gold reserves are also present in the tailing dumps (cyanide dumps). But the government has delayed implementation of the revival plan. Nearly a decade after closure, Karnataka HC directed the Centre to look into ways to revive the mines. Prior to this, the government had formed many committees.

The C P Gupta committee constituted in 2005 reported that 13.72 lakh tonnes of gold reserves were found in Chigargunta mine, which is 27km from KGF. The Old Bisnatham mine, 8km from south of KGF, has 0.065 million tonnes.

Kolar Gold Fields is situated in the south of Bangarpet Taluk of the Kolar District, Karnataka State, to east flow ridge of hills of which Dod Betta hill, 3195 feet above sea level, is the most conspicuous point. It is about 30 km from Kolar and 100 km from Bangalore.

In 1873, M F Lavelle, a resident in Bangalore, applied to the Mysore government for the exclusive privilege of mining in the Kolar district. His request was granted and he commenced operations by sinking a shaft near Urigam (Oorgaum) in 1875, but, finding that large capital would be required he, in the following year and with the approval of the government, transferred all his rights and concessions to the late Major General G de la Poer Beresford.

Major General Beresford formed a syndicate known as the Kolar Concessionaries (now merged into the Gold Fields of Mysore Co.) which took up the matter in earnest, and gradually acquired the area known as the Kolar Gold Fields.

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