Karnataka - Raichur

‘HGML should not be privatised’

Raichur: Parasmal Sukhani, former chairman of Hutti Gold Mines Company Ltd. (HGML) has urged the State Government not to go ahead with the privatisation of the company. Instead, he suggested that steps should be taken to allow the management of HGML to expand its mining activity along the newly found Hutti-Maski belt for its healthy survival for another two decades.

Talking to The Hindu on Wednesday, Mr. Sukhani said that he had learnt that the Government had firmed up its decision to privatise HGML and lease out new mining activity along the Hutti-Maski belt just to appease some influential mine owners from Bellary district. Such a decision would not only affect the interest of the State but also the interest of the workers and staff of HGML, he said.

He said HGML, a State utility, was the only active gold mine in the country. With availability of all necessary infrastructure, the HGML had been making profit for the past four years. Last year, it had earned a net profit of about Rs. 200 crore. However, experts had assessed that the life of the company might end in the next ten years.

At present, gold production at HGML had been limited to 3,000 kg annually, owing to low ore content (4 gm to 5 gm a tonne) in the existing mining area. This could come down further in the coming years affecting the normal functioning of the HGML.

Which is why Mr. Sukhani has suggested exploring the possibility of expanding its mining activity to the newly found Hutti-Maski gold reserve.

Mr. Sukhani said that the Government had also renewed the mining licence of Deccan Gold Mines to take up the exploration of new deposits of gold in the Hutti-Maski belt. He felt there was no need to renew the licence of DGM as experts had already completed the exploration of new gold deposits.

The Government should, instead, cancel the renewed licence and allow HGML to take up gold ore extraction from the Hutti-Maski belt, he said.

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