Deccan Gold Mines Ltd, is the only listed private exploration
and mining company in India. It started its operation during the year 2002. The
Australia based company signed an M.O.U with Karnataka state govt at the global
investors meet to undertake exploration and sitting up a 2000 MT per day gold
ore processing plant.
The company conducted gold prospecting in several regions in
Karnataka State and other region with in India and submitted an application for
mining license for Ganajur region which is under processing at the ministry of
mining foot of India.
Mining at Kolar mines were started several centuries ago
first by Gupta period in 5th century AD and then by the Vijaya Nagar
empire then by Tipu Sultan and then govt of India. The mine was operational
till a few decades ago. Total gold extracted from Karnataka state was 1000MT as
per available data. The only operating Hutti mine also in Karnataka state. This
shows that there is immense potential for gold mining in the state of Karnataka.
35 acres of land required to set up the ore processing plant
has been procured and is in the hands of company for which environmental
clearance also has been obtained.
The present Modi govt is considering granting mining license
to a private company to mine gold from Karnataka from kanajur mine in order to
reduce trade of the company. The ministry of trade and commerce is considering
this less than 100 days programme of the govt. Hence it is expected to get his
license by the end of this year itself.
Environmental clearance is also expected within one year
itself and production of gold is expected by the year 2016.
The C.E.O of the company Charles E.E Devenish is an interview
has started that exploration at 60 to 70 places in Karnataka and other regions
in India has been under taken and about 12 to 15 regions are found be gold
bearing and expressed hope to produce 300MT of gold is 2 to 3 decades.
Geological survey of India has already assessed and stated
that there is substantial quantity of gold deposit in India. It is expected that when mining license is received by the
company by the end of this year. The environmental clearance can be obtained
within the year and production of gold can be started by the end of 2016.
At the current market price of 34.85 per share it is a good
buy and will appreciate within a period of 1 to 2 years.
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