Untapped 33 Mln Tonnes Of Gold Tailings In KGF: Govt Panel Pushes For Monetisation

The Standing Committee on Coal, Mines and Steel has called on the Ministry of Mines to accelerate the monetisation of nearly 33 million tonnes of gold-bearing tailings dumps lying unused under Bharat Gold Mines Limited (BGML) at the historic Kolar Gold Fields (KGF) in Karnataka.

The parliamentary committee highlighted that even though BGML ceased operations in 2001, the site continues to retain significant value in the form of tailings dumps. These dumps are essentially the residual waste generated during the mining process. While they were once considered of little use, advancements in technology have made it possible to reprocess them more efficiently and extract remaining traces of gold and other valuable minerals.

The committee has directed the Ministry of Mines to fast-track the monetisation process by preparing a comprehensive action plan. It has also asked the ministry to ensure regular updates on progress.

According to a report published last year by The Print, the tailings dumps cover more than 15 per cent of the total area of KGF. The estimated value of minerals contained in these dumps is believed to be in the range of Rs 25,000 crore to Rs 30,000 crore.

A senior official from the Ministry of Mines told The Print, last year, that around 1 gram of residual gold could be extracted from every tonne of processed ore in the tailings. Meanwhile, the Non-Ferrous Materials Technology Development Centre (NFTDC), a research and development institution under the ministry, has stated that at least 2 grams per tonne of recoverable value has been demonstrated through studies. In addition to gold, surveys have revealed the presence of platinum group elements (PGEs) such as rhodium and palladium, along with traces of tungsten.

However, beyond the economic gains, the committee also pointed out the environmental risks associated with leaving tailings dumps unmanaged. These deposits may contain residual chemicals and heavy metals, which can pose threats to soil quality and groundwater if not handled properly.

BGML was incorporated in April 1972 under the administrative control of the Department of Mines. The company was responsible for managing the Kolar Gold Fields, one of India's oldest and most famous gold mining regions. Mining activities in KGF date back to 1880, when operations were first started by John Taylor and Sons, before being nationalised in 1956. BGML later expanded its operations to include a few smaller sites in Andhra Pradesh.

Over time, however, mining operations became economically unviable, leading to their closure in 2001. In 2006, the Union Cabinet decided to dispose of BGML's assets through a global tender, while granting the first right of refusal to a society of former employees. Since then, there have been repeated efforts to revive mining activities in KGF. A workers' forum led by former BGML chief engineer K.M. Divakaran has consistently advocated for revival, even submitting a detailed master plan and writing to Prime Minister Narendra Modi.

Despite these efforts, progress has remained limited. Notably, in the Union Budget for 2026-27, a modest allocation of Rs 8.75 crore has been made for the maintenance of BGML assets.