Wildlife shrinks Vedanta's gold mine in Chattisgarh

The mine is the oldest explored gold deposit in the Central India, having commercial potential

Vedanta Resources, one of the world's largest diversified natural resources companies, would have to lose about one-fourth of the area in the gold mine that it bagged in Chhattisgarh due to the movement of wildlife.

The London-listed mining major had been allotted the Baghmara (Sonakhan) gold mine, which was country’s first mine carrying the yellow metal to be auctioned. The company would be granted the composite licence that includes both prospecting licence and mining lease.

The Baghmara mine is spread across an area of 608 hectares in a densely forested pocket of the Balodabazar-Bhatapara district — about 130 km northeast of Raipur. Based on the exploration and available reports, the mine has an estimated reserve of 2,700 kg of gold metal. Over 160 bids were submitted for the mine.

The mine is the oldest explored gold deposit in the Central India and has long been held as having a commercial potential. On exploration, it would contribute towards India’s target to reduce gold import besides promoting gold, gems and jewellery business in the state.

Vedanta Resources Inc quoted the highest bid of 12.55 per cent of the International Business Machines Corporation (IBM) price at Rs 74,712 per troy ounce (1 troy ounce = 31.10 gram) to win the gold mine.

Before the company could start the prospecting, the ministry of environment, forest and climate change had put spanner. “The ministry had asked not to carry prospecting work in 200 hectares of area considering it to be an eco sensitive pocket of Bar Nawapara sanctuary,” a senior mining department official told Business Standard.

Now, Vedanta would have to play with 408 hectares. The company officials said the development would not affect the prospects as they expect real reserve in 408 hectares of pocket.

The mining department had however urged the ministry to reconsider the matter justifying that the 200 hectares of the area was not part of sanctuary and was only a passing route for the wildlife.