Jharkhand, located in the eastern part of India, is one of the richest mineral zones in the world and boasts of 40 percent and 29 percent of India’s mineral and coal reserves respectively. Due to its large mineral reserves, mining and mineral extraction are the major industries in the state. The value of mineral production (excluding fuel minerals) during 2018-19 (up to February 2019) stood at Rs 2,313 crore (US$ 330.95 million).
The 250 kg gold mine in the state is all set for auction. Due to the coronavirus pandemic, the economic conditions of the state has experienced a downfall.
CM Hemant Soren said, “We are facing the biggest revenue challenge. The 250kg gold mine has been auctioned for Rs 250 crore which will be helpful for the government during the corona crisis”.
In February this year, Jharkhand already successfully auctioned two small limestone blocks which are prospecting lease-cum-mining lease (PM-cum-ML).
The 250 kg gold mine is located at Badidari in East Singhbhum district. Deputy Director General, Geological Survey of India Janardan Prasad and director Pankaj Kumar Singh submitted a report to the state Mines Secretary AbuBakkar Siddiqui after the completion of the stock detection in the mine.
The Mines Department of Jharkhand government is now prepared for the auction. The project of locating the gold was handled by the geologist Pankaj Kumar Singh. The report created by the geologists revealed the various qualities of gold ores of a total of 250 kg.
The Geological Survey of India report stated that Jharkhand is evolving as a gold spot in the country. Earlier, gold reserves have been found at lava, Kundarkocha, Pahardiha, and Parasi blocks.
The Pahardia block is estimated to have a reserve of 1.16 million tonnes of the precious metal at 2.12 grams per tonne. It is also estimated to have silver (1.16 tonnes), copper (232.4 tonnes), lead (581 tonnes), zinc (1,859 tonnes), nickel (2,905 tonnes), and quartz (1.16 million tonnes).
Parasi has an estimated gold reserve of 7.47 million tonnes at the rate of 0.5 grams per tonne and 3.71 million tonnes at 1 gram per tonne.
Jharkhand has discovered gold mines at seven more places in the state. In the coming days, there are possibilities of advancing the search work. It was found that the sand of the River Swarankha also serves as a filtering of gold particles. The search for gold mines between Ranchi and Tamar has been going on for a long time.
India has just conducted its first auction of a gold mine in February this year. Chhattisgarh became the very first state of India to auction a gold mine.