The Ministry of Mines would float global tenders for the revival of the defunct public sector gold mining company, Bharat Gold Mines Company (BGML), within three months. The Supreme Court, on July 9, 2013, ordered for floating of the global tenders for the revival of BGML at the earliest.
"Minister for mines Dinsha Patel held a high-level meeting of Mines Ministry with secretary, joint secretary of department of mines and CMD of Bharat Gold Mines Limited, in Delhi yesterday to discuss and expedite the process for the early implementation of Supreme Court decision regarding floating of global tender for revival of BGML. The meeting decided to go ahead with the floating of global tenders within the next three months," K H Muniyappa, minister for micro, small and medium enterprises told reporters, here today.
Recently, the Apex Court set aside the Karnataka High Court stay orders and directed the Centre to call for a global tender to revive the over 100 year old gold mines at the earliest as possible.
Also Read
Union Cabinet, in 2006, had decided to restart mining operations at Kolar Gold Fields, where BGML's gold mines are located, about 110 kms from Bangalore. However, the decision was not implemented due to differences among various employees unions. Subsequently, the Karnataka High Court had stayed the process.
Kolar Gold Fields (KGF) is one of the largest and deepest gold mines of the world and was closed in the year 2001. The Kolar Gold Fields, which were nationalised in 1956 and handed over to state-run Bharat Gold Mines Ltd. (BGML), were shut down in the year 2001 after gold mining became uneconomical at lower price levels by the then NDA government.
"The revival of BGML will come about in six months and it would generate direct employment for about 3,500 employees and indirect employment to nearly 5,000 persons. This will change the complexion of Kolar district in the near future," Muniyappa added.
He said, the employees union would also be allowed to participate in the global tenders. The highest bidder will have to pay the pending gratuity and pension arrears of employees.
About three years ago, the Government of India, planned to convert BGML as a subsidiary of Nalco in a bid to revive the gold mining company. However, the employees' unions had opposed the move.
The employees' unions had proposed to tie-up with an Australian mining and exploration company to reopen the Kolar Gold Mines and prospect for deposits in the vicinity, as well as in other places in the country.
