Balvinder Kumar, the top civil servant at the federal mines ministry, said getting the Kolar mines going would help the government bring down its import bill.
Initial Mineral Exploration Corp estimates show reserves worth $1.17 billion in the mines, according to the briefing document. Another $880.28 million in gold-bearing deposits is estimated left over in residual dumps from previous mining operations.
“These mines have huge potential,” Kumar said, adding that the initial estimates were conservative. “We feel there is more. The whole belt has a lot of potential in terms of untapped gold.”
The document does not give an estimate of how much it would cost to restart the mines.
India imports 900 tonnes to 1,000 tonnes per year, but local gold output is miniscule, at 2 tonnes to 3 tonnes per year.
The Kolar fields, located about 65km (40 miles) northeast of the technology hub of Bengaluru, are among the world’s deepest gold mines.
Mining was started there by John Taylor and Sons, a British engineering firm, in 1880, when Britain ruled India. The area, now mostly a ghost town, still has the colonial-era clubs, houses and even a golf course that were built for its executives.
