Karnataka's only gold producer, Hutti Gold Mines, plans to triple annual production of the yellow metal to 5,000 kg in one-and-a-half years, according to Karnataka Mines and Geology Minister Murugesh R. Nirani.
Nirani, who completes one month in office as a cabinet minister in the BJP-ruled Karnataka government, added that due to COVID-19, the revenue from mine auctions so far in the current fiscal could reach only 85 percent of the Rs 3,700 crore achieved in 2019-20.
But in the next fiscal, it is expected to surpass the target of Rs 4,000 crore.
Currently, HGML is producing 1,700 kg per annum. Within 18 months, the plan is to increase gold production to 5,000 kg per annum. There are reserves, technology, and markets. There is potential, "Nirani said.
Nirani stated that revenue from mine auctions in 2020–21 has only reached 85% of the Rs 3,700 crore achieved in 2019–20 fiscal.
The revenue was lower this year because of a lack of mining activities in the wake of the COVID-19 pandemic. However, for the next fiscal, our target is to achieve Rs 4,000 crore. We expect to surpass this, "he added.
Regarding the District Mineral Foundation (DMF) funds meant to be used in mining-affected areas, the minister said the state government has collected Rs 2,400 crore in the DMF till December 2020. However, only Rs 600 crore has been utilized so far.
"Still, we have Rs 1,800 crore. It has not been utilized as in some districts, not a single meeting has been convened in the last two years, "Nirani said.
However, district collectors in mining areas have been directed to hold monthly meetings and warned of strict action for not utilizing the DMF funds, which are normally used for the construction of roads and health infrastructure, among others, he added.
As regards the policy changes the state government is mulling to make mining activities more transparent, the minister said permission is required from seventy-eight departments, from revenue to environment and transport, for carrying out any mining work.
Furthermore, he said the state government is planning to introduce a single-window clearance system for mining projects. Already, a draught is ready, and very soon the policy will be announced. The idea is to fast-track the clearance and attract investment, "he said.
That apart, the government plans to hold "mining adalats" in Mysuru, Belgaum, Gulbarga, Bengaluru, and Mangalore on a fortnightly basis to address grievances related to mining projects, he added.