|India has been the number one in global gold demand for decades, importing close to a 1,000 tonnes in good years. But, following the closure of the Kolar Gold Field in 2001 after more than 120 years and 800 tonnes of production, India is home to a single gold mine.|
The Hutti Gold Mine in the southwestern state of Karnataka produced some 45,000 ounces in 2015 and even after adding gold produced as a byproduct of copper mining, India's gold output is little more than 60,000 ounces. This rate of production is the lowest since at least 1970.
|The Indian government is finally taking some steps to encourage the development of a domestic gold mining industry. In May 2016, Parliament approved an amendment to the Mines and Minerals (Development and Regulation) Act 1957 (MMDR), which allowed private companies to bid for mining leases via a competitive auction process and proposed that mining leases for major minerals to be granted for a period of 50 years.|
|In February 2016, London-listed Vedanta resources became the first private company to successfully bid for a gold mine in India – the Baghmara gold mine in Chhattisgarh. Deccan Gold Mines, the sole gold explorer listed in Mumbai, expects to bring its flagship Ganajur project in Karnataka into production this year adding annual output of just over 50,000 ounces.|