Karnataka's Hutti Gold Mines Company Limited aims to ramp up its annual gold production to 5,000 kg within 18 months, according to Mines and Geology Minister Murugesh R Nirani. The move is part of the state government's efforts to boost the mining sector and curb illegal activities.
India's sole gold producer, Hutti Gold Mines Company Limited (HGML), is gearing up to significantly increase its output, targeting an annual production of 5,000 kilograms of gold within the next one and a half years. This ambitious plan was revealed by Karnataka's Mines and Geology Minister, Murugesh R Nirani.
Nirani, who recently completed a month in office, acknowledged that the COVID-19 pandemic had impacted mining revenues, with the current fiscal year expected to reach only 85% of the ₹3,700 crore achieved in 2019-20. However, he expressed optimism for the next fiscal year, projecting revenues to surpass the ₹4,000 crore mark.
The minister also emphasized the state government's commitment to implementing new policies aimed at curbing illegal mining and attracting investment. These measures include the introduction of a single-window clearance system and the establishment of 'mining adalats' to address grievances.
Karnataka holds the distinction of being the only gold ore producer in India, Nirani noted, adding that the state possesses ample reserves, advanced technology, and a robust market for gold. The price of gold has surged to over ₹47,000 per 10 grams.
HGML, a Karnataka government undertaking, operates mining units in Raichur and Chitradurga districts. While the Chitradurga unit's gold mining operations are currently suspended, the company has diversified into wind farm projects. The Hutti Gold Unit (HGU) in Raichur district functions as a fully integrated facility with a production capacity of 550,000 tonnes per annum.
"Currently, HGML is producing 1,700 kg per annum. Within 18 months, the plan is to increase gold production to 5,000 kg per annum. There are reserves, technology and markets. There is potential," Nirani stated.
While the state government is working to auction more mining assets in the 2021-22 fiscal year, some proposals are pending at the central government level due to existing mining-related issues. The state government has made a representation to the Union Mines Ministry, which has assured the clearance of pending proposals.
Regarding the District Mineral Foundation (DMF) funds, which are intended for use in mining-affected areas, the minister revealed that the state government has collected ₹2,400 crore in the DMF till December 2020. However, only ₹600 crore has been utilized so far. District collectors have been instructed to hold monthly meetings and have been warned of strict action if DMF funds are not utilized effectively for infrastructure development and healthcare.
The state government also intends to streamline the process for mining projects by introducing a single-window clearance system. Additionally, 'mining adalats' will be held regularly in various locations to address grievances related to mining projects.
