The Mineral Exploration Corporation Limited starts mining at KGF (Kolar Gold Field) after 16 years.
The Kolar Gold mines are located nearly 100 kilometer from Bengaluru. KGF were closed in 2001 due to the fall in gold prices. The pyroclastic and pillow lava at the mines were declared as a National Geological Monument by the Geological Survey of India. This was done for the protection, maintenance and encouragement of Geo-Tourism.
The power generation units in Karnataka’s Shivanasamudra, Mandya were built to support the mining operations in 1889. In 1956, KGF (Kolar Gold Fields) were nationalized . The mining operations were closed by the central Government in 2001 citing the production did not justify the investment.
Kannada films “K.G.F: Chapter 1” and “K.G.F: Chapter 2” were also set on the fields.
Gold Reserves in India
Karantaka is the largest producer of gold in India. Kolar gold fields of Karnataka is one of the deepest mines in the world. Mponeng Gold Mines of South Africa is the deepest gold mine globally.
Second largest producer of gold in India is Andhra Pradesh. Andhra Pradesh’s Ramagiri, Anantpur is the most important gold field.
According to the World Gold Council, India has the 10th largest gold reserves globally with more than 600 tonnes. United States of America has the highest gold reserves worldwide 8,133 tonnes Second largest Gold reserver Germany 3,366 tonnes. The International Monetary Fund alone holds 2,451 tonnes of gold.
- United States – 200.2 MT
- Canada – 180 MT
- Indonesia- 160 MT
- Peru – 130 MT
- Ghana – 130 MT
- Mexico- 110 MT
- Uzbekistan- 100 MT
- Kazakhstan- 100Mt
- South Africa – 90 MT
Gold Imports and Exports
India imported $11.5 billion of gold in 2019-20. India is the largest importer of gold worldwide. Gold imports in India is one of the main reasons of Current Account Deficit.
Current Account Deficit
It is the measurement of a country’s trade where the value of goods & services of its imports exceeds the exports.
Gold Vs Currency
The value of a country’s currency is tied to the value of its imports & exports. When the imports of the country are greater, the value of its currency decreases. Thus, imports of gold in India has a major role towards depreciation of Indian rupees. MECL start mining at Kolar Gold Fields MECL start mining at Kolar Gold Fields