State-run Hutti Gold Mines may take over BGML

State-run Hutti Gold Mines may take over BGML

The Bharath Gold Mines Limited (BGML), Kolar, is likely to be taken over by the State-run Hutti Gold Mines Limited (HGML).

Union Minister for Steel and Mines Narendra Singh Tomar, in the presence of Chief Minister Siddaramaiah, urged the government to take over the BGML at a meeting with the Department of Mines around six months ago. Siddaramaiah had readily agreed to the suggestion.

Meanwhile, the Union mines department suggested that Karnataka appoint an IAS ranked officer to manage BGML. They recommended the appointment of an officer from the Centre on deputation. However, the State government wanted to appoint HGML Director A K Monappa, who is also an IAS officer, to manage BGML operations.

Secretary for Mines, Karnataka, Tushar Girinath, said that the decision to appoint Monappa was interim and the final call in this regard will be taken by the Centre. HGML director Monappa said he was unaware that BGML was being taken over by the HGML. “We have not received any information in this regard,” he said.

Sources in the government added that the Karnataka government was not “too keen” to hand over mining of gold to private enterprises in order to preserve its own standing in gold mining.

The State is likely to invest at least Rs 250-300 crore in further expansion of HGML and gold exploration activities in the State.

The BGML reserves are still said to be worth a fortune, despite heavy mining activities.

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