Karnataka govt 'sceptical' over revival of Kolar gold mines

BENGALURU: The Karnataka government has shown “sceptisim” over the revival of the Bharat Gold Mines Limited (BGML) as any efforts to re-start the gold mines in Kolar would yield a “negative” result for the state exchequer.
At a meeting with chief minister H D Kumaraswamy, in the presence of the industries department minister K J George and chief secretary T M Vijay Bhaskar, officials said the government was in fact likely to lose money if there is any effort to revive the mines.
The central government proposal asking the Karnataka government to revive the gold mines includes the state taking over the liabilities of no less than Rs 1,600 crore, if not more.
According to government sources, the net sum of the mining operations and reviving the gold mines would burden the exchequer more than the earnings.
As a result it has been resolved by the state government asking the centre to forgo the liabilities which are owed by BGML in order to revive the gold mines in Kolar.
“If the centre acceedes to the demand of the state then there is a chance of even taking over the mines but nonetheless reviving and revisiting the mining operations will be an expensive affair,” said a senior government official.
It is said the government and mines department have already concurred over the BGML mines being “unviable” as the yield of gold is low and the tonnage of waste is high.
According to the logic presented by the centre, the state could recover the liabilities in the long run by way of taking over the land parcels available with the BGML. complimenting the mining operations.
With such being the case, Kumaraswamy has now asked the industries minister to lead the negotiations with the centre to try and save the gold mines from being permanently shelved.
It is said this is the second round of negotiations with the centre and the union mines ministry to push for a resolution on the matter.
It may be recalled that BGML revival has been one of the most speculated public sector units return to full glory, with employment opportunities having virtually nullified due to the stopping of operations in 2001.