HATTI GOLD MINE

Hatti Gold Mine

The history of mineral development is as old as the civilization. In India, the mineral production dates back to the ancient times as the mining activities can be traced as far back as 6,000 years or so. The remains of some of the old mine workings are witness to this fact.

A few of these workings have led to the discovery of a number of significant mineral deposits, which are being worked in the present time. In recent times the impetus to the mineral development was imparted in the country only after the political Independence came in the year 1947 when the significance of role of minerals was realized in nation building. Realizing the significance of industrial development of the country, Industrial Policy Resolution was promulgated in 1956 by the Central Government. Under this ambitious programme of developing several industries (such as steel, non-ferrous metals, cement, power, fertilizers, etc.) were launched which required increasing quantities of minerals. Coal was the one to have received the maximum attention for being the basic fuel for a whole range of industries such as steel, railways and power plants.

The entire production of lignite, petroleum and natural gas, copper, lead- zinc ores, gold, silver, diamond, tungsten concentrates, pyrites, rock phosphate, etc. was contributed from the mines operated under the public sector.

Current Status

Being aware of the vast potential of the sector, the Indian Government has been consistently and in a pragmatic manner opening up the previously controlled regime to usher private investment in the sector and infuse funds, technology and managerial expertise. The opening up of the Indian mining sector has, therefore, generated considerable global interest. The Indian mining sector was opened up to Foreign Direct Investment in 1993 after the announcement of the New Mineral Policy. In India, 80 per cent of mining is in coal and the balance 20 per cent is in various metals and other raw materials such as gold, copper, iron, lead, bauxite, zinc and uranium.

COMPANY PROFILE

BACKGROUND AND INCEPTION OF HUTTI GOLD MINES

1887	Gold Mine was undertaken by ‘Hyderabad (Deccan) Company” for the Nizam of Hyderabad.
1880 -1920	Modern mining took place by M/s. John Taylor's and Sons. During the period between 1902 to 1918 only the Main Reef alone produced 3.8 lakhs tonnes of ore and yielded 7.41 tonnes of gold @ an average grade of 19.45 g/t. and was mined up to 1052 m. depth.
1920	Mine was closed down due to paucity of materials and funds at attributable to world war 1.
1938	Detailed exploration by geological & Geophysical surveys diamond drilling and dewatering of the village reef mine were conducted which resulted in rediscovery of Village Zone-I and Okleye’s Reefs.
1947	On 8th July 1947 “ The Hyderabad Gold Mines Company Limited” was incorporated and the mining operations were entrusted to  John Taylor & Sons by the Nizam Hyderabad.
1956	It was renamed as “The Hutti Gold Mines Company Limited” (H.G.M.L) with the formation of Mysore State (now Karnataka) when the state reorganized.
1966	Indian Gold Control Act 1966 imposed severe restrictions on Gold trade and industry.
1971	In its Silver Jubilee year the capacity was tripled from 310 TPD to 910 TPD.
1985	Two loss making Copper units “Chitradurga Copper Company and “Karnataka Copper Consortium Limited “at Kalyadi were amalgamated with H.G.M.L. Thus the company’s operations were extended to copper mining and produced of copper concentrate.
1992	The Gold Control Act was replaced allowing free import of gold resulting in almost stabilization of Indian gold prices.
1996	The Gold Control Act was replaced allowing free import of Gold resulting in equalization of Indian Gold prices with International Gold prices. Introduction of Carbon-in-pulp (CIP) technology in the Mill Department.

1997	In its “Golden Jubilee Year”, H.G.M.L. undertakes a comprehensive Modernized & Expansion Programme to double its production by increasing capacity at Hutti and conversion of Copper units to Gold units at Chitradurga and Kalyadi.
1998-99 & 2002	Phase wise Ball Mill addition.
2004	Introduction of large Agitators (11m dia x 11.5 m height). And the total Gold production was 3499.227 Kgs. which was the highest record production in the history of the HGML.
2005	Improvement in the Sand Stowing system, Detoxification plant, new high rate thickener and Carbon column.
2008	The total Gold production was 2796 Kgs. of gold was produced in the year 2007-08.
2010	Sag & Ball Mill.

Hutti Gold Mines Company Limited (HGML), Government of Karnataka Undertaking (Established in 1947 as Hyderabad Gold Mines), has the unique distinction of being the only producer of primary gold in the country.

HGML has been active in the exploration, development and exploitation of gold deposits occurring in Karnataka.

The Company’s Corporate office is situated in Bangalore and it operates two units and two satellite mines. The Hutti Gold unit (HGU)  and satellite mines at UTI (Opencast) of Deodurga taluk and Heera Buddinni (Exploratory Underground mine) of Manvi taluk-in Raichur district and the Chitradurga Gold unit (CGU) in Chitradurga district.

HGU with capacities to produce 600000 TPA currently processes the ore from Hutti Mine and two satellite mines at Uti (opencast) and Hira-Buddinni (Exploratory underground mine).  The gold operations at CGU are temparorily suspended, and the Company has installed wind farm with capacity of 9.3MW power generation in its area.

Geology & Reserves

Hutti is located at Latitude 16^o 12’ N. Longitude 76 ^o 43’ E.

The Hutti Gold Deposit is located in the Hutti-Maski Pre-Cambrian greenstone belt. The auriferous lodes occur within the metaba salts and are gold quartz sulphide lodes, which are confined to laterally and depth persistent shear zones.

Gold occurs in native state and is generally associated with quartz veins and also with sulphide minerals viz., arsnopyrite, purrhotite and pyrite as inclusion, fracture filling and also replacement in microscopic and submicroscopic particles. Localization of gold mineralization is litho logically and mainly structurally controlled and the ore shoots have typical geometric pattern of distribution. There are nine parallel lodes exposed on the surface, of which six lodes are being mined. The Hutti deposit extends for about 4 km strike length and the width covered by all the parallel lodes is about 1.5 km. The parallel lodes have a general strike of NNW – SSE and dips ranging from 600-700 due West.

The strike length covered by the present mining is 1.4 km and the proved and probable ore reserves up to the present mine depth of 846 m are 6.76 million tonnes at 5.27 g/t grade. The immediate northern and southern extensions of Hutti mines also have good potential and detailed exploration by drilling and exploratory mines development is in progress on the extensions of New East Reef, Strike Reef, Zone-I Reef, Middle Reef and Oakley’s Reefs. 

Nature of the Business carried out

Ø    To carry out exploration activities to increase the ore reserves of the mining area and find new deposits

Ø    To beneficiate, smelt, refine, cast of finished gold metal in to saleable products in the form of bullion buttons

Ø    To increase the efficiency of the mine and production plants with the cost reduction, by producing 2000 tons per day & by implementing modernization/expansion project

Ø    To improve profitability to achieve financial stability

Ø    To build a top class Gold Mine for next 50 years

VISION AND MISSION:

Vision

ü    The Corporate Vision is to become one of the most vibrant, self reliant, financially viable Corporate.

ü    Improve Productivity and Profitability.

ü    Provide Steady Growth in terms of percentage of capacity utilization.

ü    Provide safe working condition and strong focus on safety.

ü    Give more importance to the Mined development and safety of workers and endeavour to adopt world class safety standards.

ü    To reach the set targets and goals by adopting process improvement.

ü    To undertake welfare and community development in Hutti.

Mission

ü    To develop HGML industry on sound lines by exploiting existing gold deposits and developing new gold mines located in various parts of Karnataka.

ü    Adoption of appropriate cost effective measures

ü    Bringing modern mining technology and expertise

ü    Adopt modernization and expansion programs at Hutti in order to make the company a self reliant, financially viable venture.

ü    Have environment friendly and healthy mining and production process

PRODUCT PROFILE:

Gold has long considered one of the most precious metals, and its value has been used as the standard for many currencies (Known as the gold standard) in history. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties.

The price of gold is determined on the open market, but a procedure known as the Gold Fixing in London, originating in 1919, provides a twice-daily benchmark figure to the industry.

Historically gold was used to back currency in an economic system known as the gold standard in which one unit of currency was equivalent to a certain amount of gold. As part of this system, governments attempted to control the price of gold by setting values at which they would exchange it for currency.

For all long period the HGML, Government of Karnataka Undertaking (Established in 1947 as Hyderabad Gold Mines), has the unique distinction of being the only producer of primary gold in the country.

HGML has been active in the exploration, development and exploitation of gold deposits occurring in Karnataka.

Gold Bullion buttons/bars Produced By Hutti Gold Mines

                                                                                       

GML’s Production Performance of the Decade (2000-2010) 

Year	Ore hoisted Hutti only    (in tons)	Ore treated (Hutti + NP) (in tons)	Gold produce (in kg’s)
1999-00	254529	349084	1395.82
2000-01	260199	335845	1784.99
2001-02	379251	409437	2333.50
2002-03	460637	525928	2640.496
2003-04	483263	623125	3096.544
2004-05	480826	592685	3507.607
2005-06	454351	513722	2848.340
2006-07	484723	522374	2336.36
2007-08	504654	570447	2420.232
2008-09	504654	570447	2420.232
2009-10	498099	555200	2069.750

Area of operations:

The area of operation covers Karnataka state. It can be said as regional operation. The Hutti gold mines ltd is only one unit producing gold. It has got other units like HIRABUDDINI & UTI. The company can produce around 7 kilograms of gold every day and will send to Bangalore regional office to sell in Bombay Bullion market Chitradurga  Windmill Project.

Ownership pattern:      

Government has owned 99%of the company shares and rest is owned by the private enterprises.

Competitors’ information:

There are no competitors because of the nature of the product that is gold and Hutti gold mine is one and only gold mines in India.

Infrastructural facilities:

Housing :-

The company has having 2365 quarters. These have been allotted to eligible officers, Staff and Employees. Regular visit made to colonies by Welfare officers to regulate Health and Hygienic Camp area.

Hospital :-

HGML Company has also most modern Hospital facility with 120 wide capacity. The existing hospital is equipped with modern infractures like AC operation theatre, ECG, X-ray, Ultrasound scanner, Defibrillator with cardiac monitor, Auto analyzer, Lung function test in computer, Blood bank, Ventilator etc.