Govt to float global tender to sell assets of Kolar gold mines

Kolar gold mines were closed in 2001 due to mounting losses and depleting reserves

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Government plans to float a global tender for selling assets of now closed Bharat Gold Mines Ltd (BGML), which owns famous Kolar gold mines in Karnataka.

"The government proposes to float an open global tender inviting bids for purchase of assets of BGML as per terms approved by Government," Mines Minister Dinsha Patel said in a written reply to the Lok Sabha.

It, however, did not give any timeline and other details related to the proposed tender.

Patel also said that Geological Survey of India has not carried out any feasibility study of reviving the Kolar gold mines and the government does not have any plan to check the feasibility, profitability and financial aspects before restarting the operations.

Last month, the Supreme Court had approved government's plan of floating global tender, so that the Kolar gold mines can be restarted. It was closed in 2001 due to mounting losses and depleting reserves. The BGML employees were opposed to its closure and had challenged it in various courts.

"BGML since 1972 on the whole had been incurring losses due to depletion of resources, poor rate of recovery of gold from the ore with increasing depth of ore body and excess manpower, which rendered the whole operation unviable. Government had decided to wind up the company," Patel said.

Kolar gold fields were once considered to be one of the largest gold fields in India and mining here used to happen for centuries. In 1956, the government had nationalised it and in 1972 operations were handed over to BGML. The mines here are among the deepest underground mine in the world.