NMDC, a state-owned Indian iron ore miner, is planning to invest around $61 million in its first foray into gold mining. The company has signed a letter of intent with the Andhra Pradesh government to develop the Chigargunta-Bisanatham gold block. This block is estimated to contain about 2.5 million tonnes of ore with an average grade of 0.8 grams per tonne.
The project aims to generate about 100,000 tonnes of gold annually. This would position NMDC as one of the largest gold producers in India. The company is targeting to commence production within the next two years.
(Photo: Bloomberg)
This investment in gold mining marks a significant shift for NMDC. The company has traditionally focused on iron ore. However, it aims to diversify its portfolio and tap into the growing demand for gold in India. India is the world’s second-largest consumer of gold. The country’s demand for this precious metal is expected to continue rising.
The investment in gold mining in India has been steadily growing, highlighting the sector’s increasing importance. In recent years, the government has actively promoted and encouraged investment in gold mining. This has resulted in the establishment of numerous large-scale gold projects throughout the country.
