Union government digs for gold at two new sites in Karnataka

BENGALURU: Karnataka, once home to two significant gold mines — the still profitably run Hutti Gold mines (HGML) and non-operational Kolar Gold Fields — has secured fresh approvals for two other gold exploration ventures, in Killarhatti and Chinnikatti.
The two are among five gold exploration projects commissioned by the Union govt-run National Minerals Exploration Trust (NMET) in 2024-25 and comes when gold prices are at a record high. The Killarhatti site spans Koppal and Raichur districts, while Chinnikatti is situated in Haveri district. The other projects, all in advanced stages, are in Jharkhand, Odisha and Ladakh.

G Kishan Reddy, minister for coal and mines, in a reply in Parliament, said a "reconnaissance survey" is on at Killarhatti block, while exploration at Chinnikatti block is at stage G-3, with detailed geological mapping and sampling underway to identify gold and allied minerals.
Interestingly, both projects were awarded to the same company — Mining Tech Consultancy Services Ltd — for a period of 10 months for Killarhatti and 12 months for Chinnikatti. The firm will bear costs for exploration which is estimated at Rs 8.5 crore.
Sources say the state and Centre had previously tried several times to explore the possibility of mining gold in Haveri, but these projects failed to take off. It is said the state forest department is yet to provide approval for the explorations.
G Kumar Naik, Raichur MP and former IAS officer, said the decision to explore the possibility of mining gold in Koppal and Raichur is a welcome move. "We need to have such projects to identify mineral resources especially since sunrise industries like renewable energy and the electric vehicles sector are beginning to take off," Naik said.
Sources say HGML was keen on exploring the region, but the Centre decided to hand it to private players.
Reddy, in his reply, also revealed NMET has commissioned six other mineral exploration contracts for bauxite, aluminous laterite, limestone and iron ore and manganese in Karnataka. The locations are primarily in north Karnataka and Uttara Kannada districts.
Karnataka mines secretary Ramandeep Choudhary said NMET projects are completely handled by the Centre and the state has a very limited role.