India to invite bids for gold extraction from Kolar mines

16 Dec 2022 , 07:57 AM

According to news reports, India intends to issue a request for proposals for the extraction of gold from 50 million tonnes of processed ore in a collection of colonial-era mines in the southern state of Karnataka.

One of India’s oldest gold mines is the Kolar fields, which are situated around 65 kilometers (40 miles) northeast of Bengaluru, the country’s technological centre.

India is eager to take advantage of modern technology that can extract gold from even the remains of ore that was treated in the past. The Kolar mines, which were shuttered more than 20 years ago, contained gold resources worth approximately $2.1 billion.

According to the official who wished to remain unnamed in accordance with official guidelines, the government also plans to extract palladium from the processed ore, or dumps, in addition to gold.

The person who is directly engaged in making decisions said, “Our only restriction is that only international businesses have the technology and experience to extract gold from processed ore, but foreign companies can always partner with local companies or even establish a consortium.”

India is the second-largest consumer of gold in the world, behind China, and imports largely satisfy its needs.

India increased the import tax on gold in July from 7.5% to 12.5% in an effort to reduce the trade deficit and relieve pressure on the Indian rupee.

According to the World Gold Council, India’s demand for gold increased 14% from a year ago to 191.7 tonnes in the quarter ending in September.

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