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Business Standard
UP'S CLAIM OF UNEARTHING 5 TIMES INDIA'S GOLD RESERVES REFUTED BY GSI
THE GSI, HEADQUARTERED IN KOLKATA, REBUTTED THE CLAIMS OF THE UTTAR
PRADESH DIRECTORATE OF GEOLOGY AND MINING (UPDGM)
Avishek Rakshit |
Kolkata Last Updated at February 22, 2020 23:40 IST
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ALSO READ
2,294-TONNE GOLDMINE UNEARTHED IN SONBHADRA, FOUR TIMES INDIA'S
RESERVES
2,900-TONNE GOLD MINE FOUND IN SONBHADRA, 4 TIMES THAT OF INDIA'S
RESERVES
RBI BUYS GOLD FOR FOREX RESERVES AFTER 5 MONTHS, NOW HOLDS 625 TONNES
GOLD INVESTMENTS FALL TO 7 TONNES IN Q3CY19 IN WORST-EVER QUARTERLY
OFFTAKE
LACK OF TRUST, SUBSTANDARD PRODUCTS HAUNT GOLD BUYERS IN INDIA: SURVEY
*
The euphoria over the claim that around 3,000 tonnes of gold
reserves, worth Rs 12 trillion, have been discovered in
Uttar Pradesh’s Sonbhadra district could not last even 24 hours,
with the Geological Survey of India (GSI) clarifying on Saturday there
had been no such discovery.
The GSI, headquartered in Kolkata, rebutted the claims of the Uttar
Pradesh Directorate of Geology and Mining (UPDGM), and said
“miscommunication” must have led to the wrong reporting of facts.
M Sridhar, director general of the GSI, said nobody in the agency gave
any such data. He said 52,806 tonnes of gold ore was
found in Sonbhadra district during the exploration work in 1998-2000.
From this reserve, only 160 kg of gold can be extracted.
“There must have been some miscommunication of facts because of
which the gold ore deposits have been overestimated. We have written a
letter to Uttar Pradesh (UPDGM), stating the facts. The GSI has not
estimated such kind of vast resource of gold deposits in Sonbhadra,”
Sridhar said.
ALSO READ: 2,900-TONNE GOLD MINE FOUND IN SONBHADRA, 4 TIMES THAT OF
INDIA'S RESERVES
The UPDGM had said on Friday that gold deposits were found in Son
Pahadi and Hardi areas of the district. Sridhar said while gold ore
was found in the area during the GSI’s exploration work in
1998-2000, it had told the state government about the discovery in
November last year.
Under the new regulation, which came into effect from 2015, the GSI
has to inform the state government when ore deposits are discovered.
Earlier, no such action was mandatory. In its report, the GSI
estimated that only 3.03 gm of gold can be extracted from a tonne of
ore. It also clarified that even the extraction amount was tentative
and could not be established for certain.
Moreover, Sridhar said the deposits were spread across only 0.5 sq km
in forest land, which made the mining of ore economically unviable.
“When there are several mines nearby, we can club it into a block
and then it makes sense to mine the ore. But in this case, the
deposits are too small to make it viable for any company to mine
it,” he said. The GSI usually prioritises its exploration work based
on the needs of the Centre. While strategic minerals like tin, cobalt,
lithium, beryllium, germanium, gallium, indium, tantalum, niobium,
selenium, and bismuth are atop the list in GSI exploration, gold is
another commodity on its priority list.
According to the World Gold Council, India has reserves of 630 tonnes
of gold.
READ OUR FULL COVERAGE ON GOLD
First Published: Sat, February 22 2020. 19:10 IST
* Read More On
*
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