Mumbai: India’s Annual gold production If the government removes bureaucratic hurdles and encourages investment in this sector, it could increase from a mere 1.6 tonnes to 20 tonnes. Sleep Council (WGC) said this in a report published on Thursday.
The South Asian country is the world’s second largest consumer of the metal and meets most of its demand through imports. Higher local production may help New Delhi limit imports.
The country invested a record $55.7 billion on gold imports in 2021, 1,050 tonnes – the most in a decade, and far more than the 430 tonnes imported in 2020.
Somasundaram PR, regional chief executive officer of WGC’s Indian operations, said, “It makes sense for India to develop mining capacity. But for this to happen, it needs change, legacy barriers must be significantly reduced and investment encouraged. should be done.”
The council said that in India, obtaining a mining license is a lengthy process, requiring approvals from multiple agencies, which prevents investments especially from multi-national companies.
The report noted that most gold mining areas are in remote locations with poor road and rail connectivity, which makes material difficult and expensive to transport to and from the sites.
Currently, the Hutti Gold Mines in Karnataka employ over 4,000 workers and contractors, and India accounts for the bulk of production.
The WGC said gold mining could provide employment to another 3,000-4,000 people, but it needed to attract investments of more than $1 billion to convert the resources into reserves and eventually build the mines.
The South Asian country is the world’s second largest consumer of the metal and meets most of its demand through imports. Higher local production may help New Delhi limit imports.
The country invested a record $55.7 billion on gold imports in 2021, 1,050 tonnes – the most in a decade, and far more than the 430 tonnes imported in 2020.
Somasundaram PR, regional chief executive officer of WGC’s Indian operations, said, “It makes sense for India to develop mining capacity. But for this to happen, it needs change, legacy barriers must be significantly reduced and investment encouraged. should be done.”
The council said that in India, obtaining a mining license is a lengthy process, requiring approvals from multiple agencies, which prevents investments especially from multi-national companies.
The report noted that most gold mining areas are in remote locations with poor road and rail connectivity, which makes material difficult and expensive to transport to and from the sites.
Currently, the Hutti Gold Mines in Karnataka employ over 4,000 workers and contractors, and India accounts for the bulk of production.
The WGC said gold mining could provide employment to another 3,000-4,000 people, but it needed to attract investments of more than $1 billion to convert the resources into reserves and eventually build the mines.