The Hindu : Karnataka News : Hopes of gold mines revival brighten

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Wednesday, Jul 25, 2007
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Karnataka

Karnataka

Hopes of gold mines revival brighten

Vishwa Kundapura

Global tender process has to be completed by August 17 this year

Union Minister Muniyappa has indicated that the court order will be executed
Mining activities were suspended seven years ago leaving the staff in the lurch

KOLAR GOLD FIELDS: Even as the D Day for global tender, which is expected to play a key role in reviving the gold mines here, is nearing, a ray of hope is writ large on the faces of the former employees of Bharat Gold Mines limited (BGML), and of course, naturally their family members too.

According to a Karnataka High Court order, the process of global tender has to be completed by August 17 this year. Kolar MP and Union Minister K.H. Muniyappa gave ample indication that the order will be executed in the interest of the working class.

The Union Cabinet has shown the green signal and the global tender would be invited shortly, Mr. Muniyappa told a press conference in Kolar a few days ago.

Mining activities in the 125-year-old gold mines, a public sector undertaking, were suspended seven years ago leaving nearly 3,000 employees and their dependents in the lurch.

Though the workers were of the view that there is still enough gold ore reserves in the area, the Union Government closed down the mines because of lack of ore reserves and heavy operational costs.

But the large chunk of employees and workers, including officers and supervisors, came together under one umbrella to promote the cause of the working class, as a result of which a global tender process appeared on the scene.

Global tender was intended to evaluate the value of the assets of BGML so as to fetch a fair market price. To achieve transparency in evaluation, this process was opted for, sources said.

As the global tender process is in the interests of the employees, they are happy over the developments in this connection, Bharat Gold Mines All Employees Industrial Cooperative Society (BGMAEICS) president K. Diwakaran told The Hindu.

Among 18 trade unions to which the BGML employees belong, 16 associations came together to form this society, he said.

Once the value of the assets is fixed, the Government will offer the trade unions for its takeover and the latter in turn will search for a viable partner for investment.

The employees are looking out for an trusted and viable partner for a joint venture to run the gold mining operations. “We are in touch with the International Mining Consortium,” Mr. Diwakaran said. “We have not finalised the company yet; once the global tender process is over we could decide on that,” he added.

According to one estimate, the assets of BGML value between Rs. 100 crore and to Rs. 180 crore. After an authentic valuation, the former employees under the aegis of BGMAEICS will go for signing a pact with a willing partner, it is learnt.
Mutually beneficial

The enormous experience and skill of BGML employees is expected to come in handy for those who come forward to work with them in the new venture. While the people in distress would get jobs, the investors in turn would be benefited from the formers’ rich experience. It will be a mutually beneficial endeavour, Mr. Diwakaran said.

Once the former employees, who toiled to extract gold treasure from the depths of the earth, and the prospective partner sign the pact, it would be a new venture and a new company would be floated, closing down the glorious chapter of BGML. It will usher in a new era in the life of people here. New technology in the field of mining is expected to be introduced under the new dispensation.

It is hoped that the gold ore reserves in the area are enough to sustain mining activities for the next 50 years. It is this fact on which the workers are banking.

“We are eagerly awaiting the reopening of mining activities here for its absence has made our lives miserable,” Nagarathnamma, a housewife, said.

These developments, including the positive approach by the courts and the Union Government, will help Kolar Gold Fields relive its past glory, said Chinnappa, a former BGML worker.

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