HYDERABAD: State-owned NMDC Limited has said it is taking the first step in obtaining a Mining License (ML) to start operations at a gold mine in Andhra Pradesh.
"NMDC takes the first step for obtaining Mining Lease & executing the ML deed to start the mining operations at Chigargunta-Bisanatham Gold Mine Block in Chittoor District, Andhra Pradesh," NMDC tweeted on Monday.
NMDC's Chairman and Managing Director Sumit Deb in a tweet said the miner strikes gold with the Gold Mine block as it is a first of its kind for the company in terms of leveraging its expertise for a multi-mineral outlook and underground mining operations as well.
NMDC sources said the firm is in the process of calling an Expression of Interest for the appointment of a Consultant for obtaining a Mining Lease and Mining Deed.
"Once the appointment of a Consultant is done, then within six months my plan and other details for the ML will be submitted to the authorities based on which ML will be granted. It may take about 12 months," as per the sources.
In 2018, NMDC emerged as the highest bidder for the gold mine through e-auction, pushing behind big players including Adani and Vedanta.
This is the first time that NMDC is going to take up gold mining in India, a senior NMDC official said. The mine development would require about Rs 450 crore investment in different phases, the official had said.
The Chigargunta-Bisanatham gold block has an area of 263.01 hectares and the resources are expected to be 1.83 million tonnes containing 5.15 grams of gold per tonne.
The total gold content recoverable would be 8.5 tonnes approximately with the potential for an upside. The mine will be operated as an underground mine which is the first of its kind for us.
NMDC offered a 38.25 per cent revenue share to the government on the sale value.