Karnataka's Hutti mines propose to deepen existing depth, to produce 17,625kg gold
Hutti Gold Mines can hope to produce 17,625kg of gold in the coming years, with the Cabinet meeting held in Kalaburagi a couple of days ago approving the proposal to deepen the existing 187.60-metre depth of the main shaft by 190.90m, making the total depth 378.5m.
The government and Hutti Gold Mines Co Limited (HGML) hope that sanction for deepening the shaft would give access to 75,000 tonnes of ore during the implementation stage of work. By processing the ore, HGML can extract 235gm of gold for every tonne, which would add up to 17,625kg of gold. New shaft sinking at the mines is to be deepened up to 363m from the surface, for mine development below the fifth level and other capital related works.
During the course of execution of the project, production of incidental ore from mine development will give HGML Rs 76.67 crore profit (Rs 4350 per gm of gold), sources said. Ore reserves over a period of 15 years will give sales realization of Rs 948.30 crore and net profit of Rs 202.90 crore (post tax).
The estimated cost of the project is Rs 175.73 crore, which includes Rs 130.45 crore towards capital expenditure and Rs 45.28 crore towards On-Lode Mine Development. There is a proposal to carry out the project by engaging an external agency for six years.
The project will provide employment opportunities to the people of Buddinni village and surrounding villages in Sirwar taluk of Raichur district. HGML has taken the Hira-Buddinni Underground Gold Mine on lease basis. At present, Hira-Buddinni Gold Mine is producing 150 tonnes of ore per day and exploratory mine development of up to 150m (up to fifth level).
The Cabinet approved the second phase of mining operations below the fifth level. HGML has proposed mine development from the fifth level to the 11th level.
The Cabinet meeting also approved a township plan at an estimated cost of Rs 985.50 crore to take up reconstruction work of 2,701 houses for the 4,000 employees of HGML. As the houses are very old, the company has to take up repair works frequently.
To provide good 2BHK houses to employees of HGML, the Cabinet approved construction of a township at an estimated cost of Rs. 998.50 crore. The township includes 50 blocks of 800 2BHK units, and seven blocks of 112 3BHK units, apart from a 130-bed hospital. The Planning and Road Asset Management Centre will construct the township.
Source: https://www.newindianexpress.com/