India's apex court orders revival of defunct BGML Kolar gold mines
The Supreme Court of India in a crucial verdict has approved the government proposal to revive an abandoned gold mine in Kolar Gold Fields, much to the relief of thousands of mine workers
NEW DELHI (Scrap Monster) : The Supreme Court of India in a crucial verdict has approved the government proposal to revive an abandoned gold mine in Kolar Gold Fields, much to the relief of thousands of mine workers.
The gold mine under the ownership of Bharat Gold Mines Limited (BGML) was closed down in the year 2001, after the company declaring that heavy extraction for a long period has lead to the exhaustion of gold ore reserves in the mines. The closure followed the company’s assessment that mining the remaining reserves would run up in losses.
The closure decision was fought in the local court by the Workers Forum of BGML. The Karnataka State High Court had earlier in its ruling directed the Indian government to take responsibility of reviving the abandoned mine. Meantime, the Union government expressed its unwillingness to revive the mines on its own and called for a bidding process to run the mines.
The plea by the Indian Government was turned down by the State High Court. Consequently, the Forum approached the apex court. The apex court ruled in favor of exploring the possibilities of tendering in giving a new life to the defunct gold mine.
The BGML Workers Forum welcomed the court order, which is expected to bring new life to around 3500 mine workers. The Indian government would now call for global tender and the best bidder would be entrusted with the task of restarting the mines at the earliest.