The New Indian Express, 20 June 2003 :
RaichurIndophil Exploration, a Bangalore-based company has been granted permits by the State Government for mineral exploration in parts of North Hutti belt of Raichur district.
The company is presently carrying out exploration in the region north of the mining area leased out to Hutti Gold Mines Ltd.
According to a press release by Indophil Exploration, the aim of the company is to make investments in the Indian exploration industry, develop mines and generate employment with all due concern for the environment.
The grant of licence to Indophil Exploration is well within the ambit of the law, the company claimed.
The clarification came in the wake of objections raised by the chairman of the Hutti Gold Mines Company recently, in a letter to the Chief Minister.
The press note stated that considering the potential for more discoveries in India, and to encourage private investment to fuel the development of the StateÃƒâ€šÃ¢â‚¬â„¢s mineral resources and the mining industry as a whole, the Central Government adopted a national mineral policy in 1993.
Accordingly, the MM (R&D) Act and the MC Rules were amended in 1994.
The Act was amended in December 1999 to enable private investors take up mineral exploration rights in different states in India.
This move of the Central Government was welcomed by all State Governments and Public Sector Undertakings as it would create employment and resources for the country.
Most importantly, it would lead to infrastructure development such as better roads, provision of water, electricity, schools, medical facilitates in areas being mined, leading to improved standards of living for people in the area.
Indophil is only exploring for gold. It has plans to spend large sums of money (Rs.20 crore to Rs.30 crore) to determine the existence of gold in the north Hutti area.
It is using the world’s best technology and expertise to do so. Should the company be successful in finding gold deposits, it could also look into entering into a joint venture agreement with the Hutti Gold mines.
Either way the benefits to the economy in the Hutti region will be substantial. More employment for locals, better infrastructure and improved standards of living without using the taxpayers’ money could be ensured.
Hutti Gold Mines has exploration permits covering parts of Bellary, Bijapur, Gadag, Davangere, Dharwad and Chitradurga districts.
The Hutti Gold Mines has also called for tenders to explore with private operators and to develop mines near Wandalli and Mangalore. All exploration work undertaken by either Indophil or Hutti Gold mines can only help the local people as it would provide employment.
Indophil has the capacity to take risks and spend money which the Government may be unable to spend.
While adhering to all the rules, Indophil has already completed street sediment sampling, hi-tech ground geophysical surveys and taken up reconnaissance drilling in the area. It has other people-friendly programmes to develop the area, like planting saplings, rain water harvesting and modernising the existing defunct drainage and road system, the press note stated.