Move over Unnao, gold is here at Kolar and it's no dream

There is 200 tonnes of gold underneath Kolar and by April exploration - not excavation - is expected to start. This is no dream but real because in 60 years' time the fields here have produced 800 tonnes of the yellow metal.

According to a report in The Times of India, a Supreme Court order to float tenders to restart mining in Kolar Gold Fields (KGF) in Karnataka is giving hopes to residents of this town, which is now a ghost of its earlier self.

[caption id="attachment_1246671" align="alignleft" width="380"] An abandoned shaft of the Kolar gold fields. Reuters. [/caption]

According to the report, around 3,000 employees of Bharat Gold Mines Ltd (BGML), which owned KGF, were laid off in 2001 when the government shut down the mines saying they were economically unviable.

In July, a Supreme Court bench had permitted the government to float global tenders to reopen the mines, ending a 12-year long legal battle waged by the laid off BGML staff.

More from Business

"It has not been an easy journey. There were 3,000 miners and their families who were dependent on the outcome of this struggle. But I was convinced that KGF's glory can be revived," K M Divakaran , president of the BGML Employees Supervisors and Officers United Forum, has been quoted as saying in the ToI report.

According to a report in the Business Standard, it is one of the largest gold reserves in the country, and has the potential to produce 100 tonnes gold annually.

KGF came under BGML after the mines were nationalised in 1956. Earlier, it was held by John Taylor and Company. BGML had 12,095 acres under it. Of this 1,109 acres was sub leased to Bharat Earth Movers. This lease will end in April 2014.

According to the BS report, both Indian and foreign companies are likely to evince interest in operating the mines. Vedanta group, Kolar Gold and an Australian mining company are keen on restarting the mines, the report said.

Read the entire ToI report here.