India will start mining in exploration of Gold and Diamond

Mumbai, Sep 3 (UNI) India has welcomed participation of International mining companies in the exploration of gold and diamonds in the country, according to Mr Subbirami Reddy, Minister of State for Mines.

Addressing at India International Jewellery Show (IIJS) 2007, organised by Gem and Jewellery Export Promotion Council (GJEPC), held here yesterday, the Minister informed that ''The estimated resources in India are to the tune of 4.5 million carats of diamonds. Till only 50 million carats have been explored.

The new Mining policy announced by the GoI will be without any red tapism, translating to automatic mining lease from one stage to another. In the new Mining policy one can transfer the lease to another company which is more proficient in the next stage of Mining, Mr Reddy said adding that though the mining policy did not have specific beneficiation policy, the mining ministry would ask mining companies to give first preference for sale to the domestic diamond cutting and polishing industry.

The minister however stressed that there was no pressure for international companies to sell their produce to the Indian companies.

Mr Reddy emphasised that since the mining majors came into India with their capital intensive technology not available in the county, the companies are entitled to enjoy the best prices they get for their product.

The ministry intended to float a tender for the sale of Kolar Gold mine in Karnataka, he added..

The minister emphasized that it was his intention to remove all delays in the processing of mining permits required in the country.

His endeavor is to ensure that production is maximized in as short a time as possible. In this regard, he is working with the State Governments to ensure that the Union-State Intergovernmental procedural delays do not hold up any mining projects.

GJEPC Vice Chairman Mr. Vasant Mehta said '' The Council intends to ask the government to appoint international valuers to asses the value of any output from any new diamond mine before their product was offered up for sale overseas.'' UNI