Soaring gold prices help Hutti Mines to earn profit

Soaring gold prices help Hutti Mines to earn profit

Consider this. The monthly salary of all employees of the company has gone up by 30 per cent, annual bonus amount hiked from Rs 10,000 to Rs 15,000, employees are getting free ration from the company, and free residential quarters are in the offing.

The reason? Surge in gold prices. With retail gold prices hovering close to the bench mark high of Rs.18,000 per 10 gm, the gold mining industry never had it so good. With the prices of gold not likely to go below Rs. 16,000 per 10 gm. in the coming days,   
A loss-making State public sector company four years ago, Hutti Gold Mines is now making a decent profit.  In 2008-09, it earned Rs 93 crore in profit.

In 2008-09, the company produced 2,420.23 kg of gold with a total turnover of Rs 316.02 crore. However, the gold yield per tonne of ore has come down from 4.24 grams in 2008-09 to 4.11 this year.

Disclosing this to reporters in Bangalore, the Company Chairman M P Renukacharya on Thursday said the Company has chalked out a plan to cash in on the increasing gold prices.

Joint Venture

The company wants to take up mining under joint venture with private firms in the coming days. Use of sophisticated technology is critical for increasing production. Therefore, the company wants to partner with private firms in future, Company Managing Director Chandrashekar said.