Kolar Gold Mines revival rests on techno-economic feasibility

Mines Ministry exploring the possibility of reviving BGML, which owns the mines

The exploration of leftover mined area of Kolar gold mines in Karnataka to assess the remaining resources has begun and its revival will depend on techno-economic feasibility, Parliament was informed today.

Bharat Gold Mines Ltd (BGML) owns famous Kolar gold mines in Karnataka.

"The government has initiated exploration of leftover mined area and tailing dumps of Kolar Gold mines for assessment of remaining resources," Mines Minister Piyush Goyal said in a written reply to a question in the Rajya Sabha.

The revival of Kolar Gold Mines will depend on techno-economic feasibility, the minister said.

The Mines Ministry said in its latest report that it is now exploring the possibility of reviving BGML in view of the preliminary estimates of Mineral Exploration Corporation Limited (MECL) on gold reserves in the Kolar gold fields.

BGML has been closed since March 1, 2001. The Cabinet had taken a decision in 2006 to dispose off the assets and liabilities of the company through an open tender, with First Right of Refusal in favour of cooperative society formed by the ex-employees of the company.

However, the Cabinet decision could not be implemented due to litigation. Finally in 2013, the Supreme Court allowed the government to go ahead with the tender.