Indian government has taken the serious step to cut down the trade deficit as it plans to revive a cluster of colonial-era gold mines. These mine have been closed for last 15 years; however they have around $2.1 billion worth of deposits left.
India is the second largest importer of the precious yellow metal. On an average India spends around $30 billion in gold buying. Federal Mines Ministry has asked the state-run Mineral Exploration Corp Ltd to explore the Kolar Gold Fields in Karnataka to understand the better estimate of the such deposits.
The authorities have appointed SBI Capital to assess the finances requirement for state-run Bharat Gold Mines Ltd. The firm has a lot of dues to workers and the authorities.
Gold is also a very popular medium of household savings in India. The gold jewellery is also considered very auspicious and best gifts for both human and gods. During the peak seasons of marriages, the demand of yellow metal increases and impacts the global prices of it.
The Mine Ministry believes that reviving the Kolar Gold Minw would certainly help India in cutting down the gold import and minimize the import bill.
The initial estimates of the reserves indicate their worth as $1.17 billion. The mines also have $880.28 million in gold-bearing deposits as residual dumps leading to their total worth near to $2 billion. India generally imports around 900 tonnes – 1,000 tonnes per year; however local gold output is just 2 tonnes – 3 tonnes per year.