Karnataka okays Centre's proposal to revive mining activities at KGF

Bengaluru: The Karnataka cabinet on Thursday approved a Union government proposal to allow mining on 13 tailing dumps linked to Bharat Gold Mines Limited in Kolar district. They have also requested the transfer of 2,330 acres from the defunct company for a planned industrial township. Law and Parliamentary Affairs Minister H K Patil informed reporters that the cabinet approved this decision, noting it required special permission under the MMDR Act.

"The cabinet has given its approval for the central government's proposal to continue the mining activities in 13 tailing dumps area of 1,003.4 acre, at the inactive Bharat Gold Mines Limited's (BGML) mining area at KGF in Kolar district, under MMDR (Mines and Minerals (Regulation and Development) Amendment) act's section 17," he said.

Bharat Gold Mines Limited, a PSU established in 1972 under the Department of Mines with its office at KGF, was closed due to economical unviability in 2001 following a Board of Industrial and Financial Reconstruction order. After the Supreme Court permitted the Centre to issue a global tender in 2013, it decided to revive old mines, including BGML in 2015 aiming to enhance domestic gold production. In 2020, the Mineral Exploration Corporation Ltd, a central entity, began exploring natural minerals on BGML's land. The drilling aimed to identify non-mineral areas for eventual transfer to the Karnataka government, which plans to develop a 3,000-acre industrial park on the site.

If mining activities are started using these tailing dumps, naturally it will generate jobs, Minister Patil said, pointing out that the state government has already asked the Centre for 2,330 acre land in the area for establishing an industrial township there.

Further noting that BGML, till 2022-23, had to pay Rs 75,24,88,025 as arrears to Karnataka, he said: "we will be requesting the Government of India to pay, or else, as we have asked them for the land, they may ask us to consider the amount for the land in kind -- like exchange."