Kolar Gold Mines in India set to start rolling in April 2014

MUMBAI (Scrap Monster) :  Gold mining operations is all set to resume at the Kolar Gold Fields in India after a long gap of 12 years. The Indian government has ultimately decided to float global tender to revive the defunct gold mine.

The gold mine under the ownership of Bharat Gold Mines Limited (BGML) was closed down in the year 2001, after the company declared 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 decision left nearly 3,000 jobless.

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. Earlier in July, the country’s apex court ruled in favor of revival f the mines.

According to sources, the tender will be floated before this month-end. The tender would be kept open for three months. Quite a few gold mining majors based in Australia, Canada, South Africa and the UK are reported to be in the race. All tenders will be scrutinized by end-February 2014. A final announcement is expected by end-March and the successful bidder will be allowed to commence extraction activities April 2014 onwards, government sources said.

The Kolar Gold Fields, 110 kilometres away from the City of Bangalore is believed to be one of the largest gold reserves that has more than 200 tons of the precious metal in its depths.