BANGALORE, January 7, 2010: With prices of the yellow metal...

BANGALORE, January 7, 2010: With prices of the yellow metal skyrocketing much so often, the State owned Hutti Gold Mines Company Ltd (HGML), the only gold extraction company in the country, has discovered availability of gold in Davangere, Tumkur, Gulbarga, Chitrdurga Shimoga and Dharwad districts.

The company is contemplating to sign joint ventures with National Mineral Development Corporation, Indo-Australian Company, Australian firm Cluff, and Deccan Mines to commence mining in districts where gold minerals are found. Now, gold mining is confined only to Hutti in Raichur district of Karnataka.

With just two months to complete the current financial year, it has set a target of producing 2,578 kg gold in 2009-10, with an average 4.11 gram of gold per tonne of ore. The company has produced 2420.33 kg gold in 2008-09.

The HGML has decided to invest Rs. 352.11 crore in the next five yeas on various expansion plans. The company, which is producing 7 to 8 kg of gold daily, has set a target to earn net profit of Rs. 98.21 crore in the current fiscal year against Rs. 93.05 crore in 2008-09. The companys total turnover in 2009-10 is expected to reach Rs. 319.78 crore against Rs. 316.02 crore in the previous year.

Minister for Excise M P Renukacharya, who is also the Chairman of the HGML, told reporters that the company has been extracting 4.11 gram of gold per tonne of ore against with an average recovery of 4.24 grams a tonne of ore in 2008-09.

The existing capacity of the ore milling unit is expected to be expanded to 2,000 tonnes per day when the ongoing work on the new milling plant (Snag Ball Mill) would be completed. As of now, about 90 per cent of the building work on the plant and the assembling of the milling plant have been completed.

A sum of Rs 14.85 crore would be spent on Ooti Gold Unit (open pit mine) development, Rs. 25 crore on ore milling unit.

The Minister said the HGML has earmarked Rs.12.09 crore to take up gold mining in Chitradurga, Davangere and Shimoga districts where the preliminary survey work has already been completed.