Global tender soon to revive Bharat Gold Mines

Bangalore, Jul 29: Global tenders will soon be invited to revive the sick Bharat Gold Mines Limited at Kolar Gold Fields with the active participation by the workers, Union Minister of State for Shipping, Road Transport and Highways K H Muniyappa said today.

Speaking to newsmen here he said this followed a decision taken by the Union Cabinet on July 27 which accepted the Mines Department's recommendations and approved the re-opening of the Special Terminal Benefit Package to the employees.

Earlier in 1987, the centre, during the tenure of V P Singh, had decided to close the mines within seven years based on the recommendations made by the Chari Committee.

Replying to queries he said the centre had also written off Rs 1037 crores debt of the company so that operations could start afresh with zero liability. The revival package allowed any highest bidder to invest Rs 150 crores on recycling tailing dumps and earmark Rs 52 crores to be paid to the workers in the form of Voluntary Retirement Scheme benefits, he added.

He said the revival would pave way for creation of over 1500 direct and another 1500 indirect jobs. Besides, a plan was also afoot to develop the surroundings of the mines in KGF to provide jobs to over 10,000 people, he revealed.

He hoped that the workers would run the unit with modern technology and sufficient financial assistance through joint venture.

He disclosed that several leading multinational companies including one from Australia had already conducted extensive survey on the availability of gold in the area and were satisfied. He also quoted an expert's observation and said the mines could be operational for another 50 years. The tailing dumps, weighing around 40 million tons, could yield around 15 tons pure gold at the rate of 0.5 to 0.7 grams per ton, he revealed.

UNI