Australia's Indo Gold to set up gold mine in Rajasthan at Rs 2,000cr

Jaipur, Feb 21 (UNI) Australia-based Indo Gold Ltd (IGL) will invest Rs 2,000 crore to develop a gold mine and primary and secondary processing plants in Rajasthan.

The company's consultants Golder Associates Pty Ltd has recently confirmed that Indo Gold has striked 3.85 crore tonnes of gold resources of low-grade as per Australian Joint Ore Reserves Committee (JORC) guidelines, in the state.

The proposed mine with the required technology will bring the findings into a polished, fit-for-sale shape.

''Indo Gold will invest up to Rs 2,000 crore to develop a modern mine in Rajasthan. Not just mine, we will also invest in primary and secondary processing plants onsite,'' Indo Gold Managing Director Mike Higgins said.

The company has secured clearance from Ministry of Environment for site of discovery, which is primarily an uninhabited area.

IGL, engaged in investing in Indian exploration and mining industry, is already working on a joint venture project with Metal Mining India Pvt Ltd (MMI).

The two companies are working on Jagpura project spread over 2,135 sq kms in southern Rajasthan, wherein IGL brings its technical expertise and financial base.

The company sees immense potential in Rajasthan and plans to invest more in the country's exploration and mining industry.

''There is an immense potential of mining in Rajasthan. The state is a host to highly prospective Archaean and Proterozoic rocks similar to those in Australia. Drilling in the Banswara area has shown good widths and grades of gold mineralisation,'' IGL Exploration Manager Antony James Truelove said.

''For mineral-rich Rajasthan, the mining sector is extremely important. The state government has also taken an initiative to develop the sector. IGL believes that mining can play a lead role in bringing faster growth and prosperity to the state,'' said MMI Managing Director Surendra Chaku.

Exploration industry is considered to be a very high risk industry. The investing companies are required to make substantial investment before they can expect any returns.

UNI