Daily Current Affairs : 22-June-2024

The Karnataka government has authorized a proposal from the Central Government to restore gold mining operations at Kolar Gold Fields (KGF). This plan includes the auctioning of 13 tailing dumps covering an area of 1,003 acres. The objective is to enhance the country’s gold production, create jobs, and revive one of India’s most historically significant mining regions.

Background of Kolar Gold Fields

Kolar Gold Fields, located around 100 kilometers from Bangalore in Karnataka’s Kolar district, is one of the deepest gold mines in the world. The history of mining at KGF dates back to 1880, when it was first operated by John Taylor & Sons. Over the years, KGF became a significant contributor to India’s gold production. However, after 121 years of operation, the mines were shut down in 2001 due to high operational costs and declining revenues.

Interestingly, KGF has also played a key role in scientific research. It was used for particle physics experiments, leading to the discovery of atmospheric neutrinos, a major scientific breakthrough.

Revival Plans and Goals

The revival of KGF is part of a larger effort to boost India’s domestic gold production. Currently, India operates only three gold mines—Hutti and Uti in Karnataka, and Hirabuddini in Jharkhand. Despite being one of the largest consumers of gold, with an annual demand of about 774 tonnes, India produces just 1.6 tonnes of gold each year. This revival aims to close this gap by increasing domestic production.

Key points about the revival:
  • Mines under Bharat Gold Mines Ltd. (BGML): KGF is owned by BGML, and the revival will be carried out under the Mines and Minerals Development and Regulation Act, 1957.
  • Job Creation: The revival is expected to provide new employment opportunities for the local population.
  • Economic Boost: By increasing gold production, India will reduce its dependence on gold imports, which could help strengthen the economy.

Future Outlook

The revival of gold mining at KGF presents a significant opportunity for both the local community and the Indian economy. If successful, it could lead to an increase in gold production, create job opportunities, and reduce India’s reliance on gold imports. However, challenges such as cost management and environmental concerns must be addressed for the project to be truly sustainable in the long run.

Important Points:

  • Government Approval: The Karnataka government has approved the Central Government’s proposal to revive gold mining at Kolar Gold Fields (KGF) and auction 13 tailing dumps covering 1,003 acres.
  • Objective: The revival aims to boost India’s gold production, generate employment, and revitalize KGF, one of India’s most historically important mining sites.
  • Historical Significance: KGF, located 100 km from Bangalore, has a mining history dating back to 1880. It operated for 121 years before closing in 2001 due to high operational costs and low revenues.
  • Scientific Contribution: KGF was also used for particle physics experiments, leading to the discovery of atmospheric neutrinos.
  • Current Gold Production in India: India operates only three gold mines—Hutti and Uti in Karnataka, and Hirabuddini in Jharkhand. The country produces just 1.6 tonnes of gold annually, while its demand is 774 tonnes per year.
  • Goals of Revival:
    • Increase domestic gold production.
    • Reduce India’s dependence on gold imports.
    • Create new job opportunities for the local community.
  • Ownership: The mines at KGF are owned by Bharat Gold Mines Ltd. (BGML), and the revival will be carried out under the Mines and Minerals Development and Regulation Act, 1957.
  • Economic Impact:
    • Boost local employment.
    • Strengthen the economy by reducing reliance on gold imports.
  • Challenges:
    • The project faces challenges such as cost management and environmental concerns, which need to be addressed for long-term sustainability.

Why In News

The Karnataka government has officially approved the Centre’s proposal to revive gold mining operations at Kolar Gold Fields (KGF) and auction 13 tailing dumps covering 1,003 acres. This move is expected to unlock valuable resources, boost gold production, and provide significant economic benefits to the region.

MCQs about Revival of Gold Mining at Kolar Gold Fields

  1. When did mining operations begin at Kolar Gold Fields (KGF)?
    A. 1850
    B. 1880
    C. 1920
    D. 2001
    Correct Answer: B. 1880
    Explanation: Mining operations at Kolar Gold Fields started in 1880 when John Taylor & Sons first began mining in the region.
  2. What was the primary reason for the closure of Kolar Gold Fields in 2001?
    A. Environmental concerns
    B. Political reasons
    C. High operational costs and declining revenues
    D. Lack of gold reserves
    Correct Answer: C. High operational costs and declining revenues
    Explanation: Kolar Gold Fields were closed in 2001 due to unsustainable operational costs and low revenues, which made further mining unfeasible.
  3. What scientific contribution is associated with Kolar Gold Fields?
    A. Discovery of X-rays
    B. Research on solar energy
    C. Discovery of atmospheric neutrinos
    D. Study of deep-sea ecosystems
    Correct Answer: C. Discovery of atmospheric neutrinos
    Explanation: Kolar Gold Fields were used for particle physics experiments that led to the discovery of atmospheric neutrinos, a major breakthrough in science.
  4. How many gold mines are currently operational in India?
    A. Five
    B. Three
    C. Ten
    D. Two
    Correct Answer: B. Three
    Explanation: India currently operates only three gold mines—Hutti and Uti in Karnataka, and Hirabuddini in Jharkhand, despite its large demand for gold.

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