India remains the largest consumer of gold in the world with demand running at about 800 tons (worht $6-7 billion) a year or approximately a quarter of the total world gold demand. In July 2007, the council of ministers of the Indian government approved a global tender process toevaluate the assets of state-owned Bharat Gold Mines (BGML) in order to estimate its fair price andrevive mining activities in its 125-year old gold mines. The gold reserves in the BGML projects are estimated to last about 50 years.
Even though India has a geology and metallogeny very similar to Western Australia and Africa and India’s pre-cambrain auriferous greenstone belts are geologically comparable with those of Western Australia and Southern African gold bearing greenstone belts, the country’s share in Gold production is minuscule compared to countries like Australia and Africa. With very few private players, there is a Huge Unexplored potential.
India produces only about 3 tons of gold a year from gold ore and about 6 tons a year as a by product of copper mining. In comparison, Australia produces about 280 tons of gold a year, from 116 mines.
The Indian geological literature refers to hundreds of localities with known gold mineralization, often marked by old gold workings, or where local inhabitants pan for gold. India is estimated to have 20,000 tonnes of gold and diamond reserves spread over several states. These localities mostly occur in the Southern Indian Dharwar Craton in Karnataka, Andhra Pradesh, Tamil Nadu, and in the Proterozoic provinces of Uttar Pradesh, Madhya Pradesh, Maharashtra and Bihar.
Hutti Greenstone Belt is a Host to a world class gold deposit
Gold is being mined by The Hutti Gold Mines Ltd (HGML), a Government of Karnataka undertaking, near Hutti village in northern Karnataka. The mine is developed on a classic Archaean lode gold deposit, similar to those in Australia, Canada and South Africa.
Gold mining activity in the belt has been known since pre-Ashokan time, about 3000 years ago. Modern gold mining commenced in the Hutti area around 1947.
The Hutti Mine has so far produced about 2 million ounces while remaining ore reserves (proven and probable) are believed to be 6,400,000 tonnes of ore grading 6.48g/t upto 750 metres depth (i.e. 1.33 million ounces). The average recovered grade from modern operations is approximately 6.8 g/t..
Hutti Mine North prospect block is located immediately north of the currently operating Hutti Gold Mine. Eight parallel gold bearing quartz-sulphide veins known as Reefs or lodes are known to exist in the currently operating Hutti Mines.
Hirenaganur prospect is a structurally controlled mineralization. Therefore, the continuity of gold bearing structures is expected up to several hundred metres.
The Uti Mine is owned and operated, as an open pit mine, by the Hutti Gold Mines Ltd.
Chinchergi prospect located some 15 km east of Hutti Gold Mine is an area of extensive ancient mining.
Bullapur Prospect is one of the recently discovered prospects in the Hutti belt located outside of the GSI-explored area of ancient gold workings.
Yatkal Prospect is situated along the southern margin of the North Huttti R.P. Block and gold is found in the granites intruding the Hutti volcanic belt.
Ancient gold workings dating back to Ashokan time dot a 20 km long tract in the South Hutti belt which is marked by a major N-S trending shear zone designated as the "Central Shear Zone (CSZ)".
Maski Prospect has all the signs of an important gold field. Thirteen old workings were reported in this prospect in the early 1900s by the Hyderabad Geological Survey.
The Indian government is taking all initiatives to channelise efforts in unearthing high value minerals like gold and diamonds. India imports Rs 65000 crore worth gold per annum as against Rs 75000 crore of diamond imports.
The government has also accorded the public sector company Hindustan Copper Ltd to diversify into gold and diamond mining in collaboration with leading foreign companies through setting up of joint ventures. Even private company Deccan Gold Mines Limited has interests in the activities of Gold exploration & production. It has acquired around 27 Reconnaissance Permits in the Southern regions through its other group companies.
The overseas firms that are in talks with the government for gold and mining exploration include Indogold, Anglo-American Gold Mining, Monarach Gold Mining, De Beers India Ltd, ACC Rio Tinto Exploration Ltd and BHP Minerals.
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