Lok Sabha Question No. 1727 (UNSTARRED), answered on 2021-12-08
Subject: Bharat Gold Mines
Ministry: MINES
Asked by: S. Muniswamy

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1727

ANSWERED ON 08.12.2021

## BHARAT GOLD MINES

## 1727.  SHRI S. MUNISWAMY:

Will the Minister of MINES be pleased to state:

- (a) whether the Bharat Gold Mines Limited will be revived and extraction of Gold will begin as before;
- (b) if so, the details thereof;
- (c) whether there is any hurdles to restart Bharat Gold Mines Limited;
- (d) if so, the details and the reasons therefore;
- (e) whether  the  Government  is  considering  the  request  to  restart  BGML  at  the earliest  for  the  larger  interest  of  the  country  and  help  the  lakhs  of  people affected by the closure of the Gold Mines; and
- (f) if so, the details thereof?

## ANSWER

## THE MINISTER OF MINES, COAL & PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

(a)  to  (d):  Bharat  Gold  Mines  Limited  (BGML),  a  Public  Sector  Undertaking incorporated in April, 1972 under the administrative control of the then Department of Mines (now M/o Mines) with its office at Kolar Gold Fields (KGF), Karnataka. It was engaged  in  (i)  mining  and  production  of  gold  mainly  in  KGF  and  (ii)  few  smaller operations  in  Andhra  Pradesh.  On  its  operations  becoming  economically  unviable, BIFR vide its order dated 12.06.2000 ordered winding up of BGML. Operations of BGML were closed with effect from 01.03.2001 under Section 25 (O) of the Industrial Disputes  Act,  1947  in  terms  of  Ministry  of  Labour's  order  dated  29.01.2001.  The Cabinet  on  27.07.2006  approved  sale  of  assets  of  BGML  through  open  global tender. The matter went into litigation and Hon'ble Supreme Court vide order dated 09.07.2013 permitted UoI to proceed with the global tender as per decision taken by the Cabinet.

All  the  mining  leases  of  BGML  have  expired  and  application  for  renewal  of mines  in  Karnataka  is  pending  whereas  Govt.  of  Andhra  Pradesh  (GoAP)  has determined/terminated all three mining leases. Besides, as per recent amendment of MMDR Act if the mining lease is not determined then the mining lease will expire in 2023.

A  meeting  was  held  to  discuss  the  future  course  of  action  w.r.t.  BGML, wherein,  it  was  decided  that,  the  department  may  explore  other  option  for  BGML.

This was needed to be preceded by exploration of dumps and mining area to assess the  resources  and  Techno  Economic  Feasibility  Study  (TEFS)  of  the  same. Accordingly,  Mineral  Exploration  Corporation  Limited  (MECL)  was  assigned  for exploration of  dumps & two unmined blocks in KGF, MECL submitted its report in 2018. MECL has also done exploration in Betraswamy block of BGML and submitted its  report  in  March,  2021.  Further,  Non-Ferrous  Technology  Development  Centre (NFTDC) was assigned TEFS for extraction of gold from tailing dumps of BGML. The TEFS report of NFTDC has been received in January, 2021. Based on these reports, Management Consultant has suggested that BGML does not look for operationalization on its own.

(e) :  No, Sir.

(f) :  Does not arise in view of the reply given to (a)-(d) above.

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