As the world’s seventh largest country in terms of area and the second most populous in the world, India has a truly expansive culture. Inhabited by modern humans as far back as 55,000 years ago, its long history has led to genetic diversity, deep traditions and a wealth of natural resources. India has been blessed with naturally occurring gemstones and precious metals and at the same time, its cultural traditions lead to great demand for these items.
Cultural Desire for Gold
In Indian culture, weddings are major celebrations that involve a great deal of jewelry and decorative pieces. The precious metals and gemstones involved in these events carry deep significance. Gold in particular is viewed as the purest metal, bringing good health and prosperity to those who wear it.
As a result, India is actually one of the top buyers of gold jewelry in the world alongside China. The country’s decorative arts have grown superbly versatile in utilizing the prized metal. Because gold can be beaten into sheets one-millionth of an inch thick, expensive saris and wedding garb actually have decorative gold-plated silk threads woven into them!
Geology
So how exactly does gold occur in the massive subcontinent? India’s geological profile is quite similar to the Antarctic, Australian and South African shields. The domain is characterized by Archaean granite-greenstone, early Proterozoic Fold Belts, Southern granulite terrain, laterite and placer gold. According to the National Mineral Inventory, Bihar has the largest gold reserves despite being one of the poorest states in the country.
Estimated resources in the northeastern side of the country present around 223 million tons or 42% of India’s estimated gold ore resources. However, due to limited capital deployment for exploration and mining development in that area, much of the activity is focused in Karnataka, which houses 22% of the countries reserves. This state is home to the high-tech hub of Bangalore, the temples and palaces of former maharajas, and the ancient Hatti gold mine.
Karnataka sits on a blend of Archean greenstone belts, peninsular gneiss and magmatites and some late Archean granulate facies terrain. It rests on the Dharwar-Shimoga belt, with much of the gold locations clustered to the center and eastern side of the area. Gold locations extend from the north of Karnataka near Davanagere all the way to the south towards Kerala. All major deposits are housed in the greenstone belts, which have been mined since ancient times.
Ancient Mining in India
Artisanal mining in India actually dates back to 400 BC, with Kautilya’s Arthashastra offering a look into the mining policies and practices of the time. This is one of the world’s oldest treatises and includes written records on economic policy, philosophy and agricultural practices to name a few. However, data was not well-preserved over the years and little to no consistent record of past gold production in the area can be found.
Documented mining activity generally concentrates towards the end of the 19th century. Modern geological surveys began in the 1870s, and multiple British companies began prospecting for gold in the Wayanad region. Mines subsequently opened up due to the interest, most notably the Kolar Gold fields to the southeast of Karnataka.
At a depth of 3,000 meters, Kolar was the second deepest mine in the world, and droves of companies began setting up shop due to the consistent production. Kolar Gold Fields was once called mini-England, and settlements began to form as far as the outskirts of the gold fields.
The townships of Robertsonpet and Andersonpet where many schools and residences began cropping up are actually named after two British mine officials. John Taylor & Sons, of which the Mysore Gold Mining Company is a subsidiary, was one of the earliest operators of mines in Kolar, working on them well into the 20th century. Kolar was one of the first areas in India to be electrified, with the mines powered by a hydroelectric powerplant at Shivanasamudra Falls.
Mining in the 20th Century
By 1956, the gold mines were nationalized and continued operation into the 21st century. The Kolar Gold Fields had an estimated 1,000 tons of gold production, far from its true capacity. Despite not being fully extracted, the mines were closed in 2001 due to poor environmental management and high operating costs. Placer or alluvial gold is also found here, most commonly occurring along the river courses that drain Peninsular India and the Himalayan belt.
In Kerala, located just south of Karnataka, many locals and travelers alike engage in placer mining along the riverbanks.
Known occurrences are in the Wayanad-Nilambur regions, and some discoveries have been noted in Attapady Valley of Palakkad district. The placer gold grains in the Nilambur Valley have been noted to have quite high purity levels and enhanced grain size.
Gold panning is also common along the Mahanadi and Ib River, and various other areas in Chhattisgarh. There have also been gold discoveries in Goa along the river Ragada, and the Chaliyar river in Malappuram, Kerala.
Production vs. Demand
India is something of a conundrum in terms of gold production. Despite being the world’s top 6th gold producer at the turn of the 20th century, production numbers are so low today that countrys like Sweden and Nicaragua chalk up better figures. India has markedly significant estimated gold reserves that remain untapped due to a lack of exploration.
Through the years, there has been a dearth of investment and organized efforts to properly develop the mineral industry. The Indian Mineral Federation estimates that only about 13% of the country’s geological potential has actually been surveyed.
With its geologic similarity to other top gold producers in the world, the country remains a dormant golden opportunity. However, with the numerous bureaucratic hurdles and incidences of corruption in mining lease assignment, India has holes to fill before its gold deposits can see the light of day.