Gold in KGF: When Indians hear the name KGF, the first thing that comes to mind is Yash’s mesmerizing performance and the movie that broke box office records. But the real KGF, i.e. Kolar Gold Fields, is still hiding a huge treasure. Is KGF, which was closed 24 years ago, ready to shine again? The Union Ministry of Mines has initiated the process of auctioning nine huge waste heaps in KGF, raising hopes for this gold mine.
Reports suggest that these wastes with gold grains are worth up to Rs 30,000 crore. The report says that these waste heaps still contain traces of gold and rare platinum group elements like palladium and rhodium. SBI CAP has been appointed to oversee the auction process. The auction is expected to be completed in the next 18-24 months. ‘With the price of gold rising to Rs 9,000 per gram, even extracting one gram of gold from a tonne is profitable.
A study conducted in 2021 by the Non-Ferrous Materials Technology Development Centre (NFTDC), a research institute under the Ministry of Mines, had revealed that at least 2 grams of gold per tonne can be extracted from this waste. This is double the earlier estimates! From this waste, which is about 30 million tonnes, even assuming a minimum price of Rs 6,000 per gram of gold and palladium, the value is estimated to be Rs 36,000 crore. The presence of high-priced rhodium is likely to further increase this value.
The need of the century! After years of delay, the Karnataka cabinet in June 2024 gave its approval to auction these wastes. These waste heaps are located on land owned by Bharat Gold Mines Limited (BGML), a central public sector undertaking that was shut down in 2001. At the same time, for the last 24 years, 1,400 km of underground tunnels have been filled with toxic cyanide-laced water. Most of the machinery is rusty and outdated. It will take a huge investment to revive mining.
Once known as ‘Mini England’ due to its cool climate, European architecture and Anglo-Indian population, KGF is famous for the world’s second deepest gold mine and Asia’s first electrified mining operations. In 1902, the British built a hydroelectric dam on the Sivan Samudra, 220 km away, to provide electricity to KGF. This made KGF the world’s first electrically powered mining town. This mining boom attracted Tamil and Telugu workers from the Madras Presidency, Anglo-Indian supervisors, Punjabi guards and British engineers. This gave rise to a township with bungalows, golf courses, hospitals and clubs. By 1930, over 30,000 people were working in the mines.
With the state and central governments now united, cyanide-free technology becoming available and gold prices soaring, the world is eagerly waiting to see if the ghost town of KGF will finally get a second life. This will not only boost India’s mineral production but also create new jobs.
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