Posted September 16, 2018 08:59:37Gold mining has come to India with the introduction of new laws in July that allow private companies to mine gold and silver at a new site at Vadodara, near the border with Nepal.
The government hopes to attract investment from abroad and has promised to boost the Indian economy through the process.
“There is a sense of euphoria and excitement among Indian citizens,” said Sankar Nair, chief executive of Nair Gold Ltd, the company that runs the mine.
“People are optimistic about the prospect of a new era in mining.
They are optimistic that this will be the beginning of a gold rush and they will soon be able to purchase the gold they have been waiting for.”
India’s gold mines are the second-largest in the world, after the United States, and it has an estimated 2,000 tonnes of the metal mined there.
Mining operations have been in decline for decades, though they have recovered recently due to improved conditions and a growing appetite for foreign investment.
The industry has seen a resurgence in recent years due to a surge in demand in China, the world’s second-biggest consumer of the precious metal, after Australia.
Gold prices have recovered from their lows of around $US5 per ounce in 2014, and have now soared above $US11 per ounce.
India has already overtaken China as the world leader in gold production, with more than 7,000 mines operating in the country.
A recent report by Bloomberg New Energy Finance (BNEF) found that India’s gold reserves were the third-largest of the world.
India was ranked fifth in the 2016 BNEF’s Global Gold Resources Index, behind the United Kingdom, China and Australia.
India is also the third largest gold producer in the European Union and the fourth-largest gold importer in the EU, according to the International Monetary Fund.