Australian firm to explore for gold in Hutti

The Hindu, 21 June 2003 :

By our staff correspondent.

Raichur, June 20. Indophil Resource Exploration Services (IRES), an Australia-based firm, which has been permitted by the sdtate government to explore for minerals through its subsidiary, deccan Gold Mines Limited (DGML) in parts of North Hutti in Raichur district, proposes to take up gold mining with the Hutti Gold Mines Company Ltd. (HGML).

Addressing a press conference here today, Sandeep Lakhwara, Director, DGML said the state government had permitted the IRES to take up mineral exploration for a period of three years in Hutti to identify gold reserves. The company had started work in the north block of the Hutti Gold Mines area, which was leased out to HGML.

He said that after liberalization, the company had evinced interest in exploring mineral reserves and had secured permission to go ahead with the task in Karnataka, Chhatisgargh, Madhya Pradesh and Andhra Pradesh. It had begun exploration in Chitradurga, Raichur, Dharwad and Kolar districts. Presently the company was engaged in exploring gold reserves in the Hutti area for which funding would come through foreign and direct investment.

He said the company planned to spend Rs. 80 crore on mineral exploration in Hutti, and modern technology and technical expertise would be used for the purpose. If gold reserves are found in the area, the company would enter into a joint venture with the HGML to mine gold in the area. As per an agreement signed with the government, it was binding on the part of the latter to invite the company first to take up mining, he said.