Tuesday, 31st July 2007 (2962 views)

A new series of rules are to be introduced which are designed to improve India's gold output, it has been revealed.

India's gold and diamond prospecting and mining regulations will be updated in order to improve domestic exploration and reduce foreign imports, according to government officials.

Reuters reports that the country's gold reserves are estimated at around 14,000 tonnes, although India only produces three tonnes of its total annual demand of 800 tonnes, importing a fifth of global output in order meet the defecit.

"Under the existing rules if any entrepreneur invests money and finds gold, then he must apply again for mining," commented junior mines minister T Subbarami Reddy.

RK Sharma, secretary general of the Federation of Indian Mineral Industries, added that most foreign firms are interested in gold mining.

New regulations are due to be sent for approval to the government this week and should make it easier for investors to receive mining licences.

Furthermore, prospecting companies would be allowed to sell maps and information to mining companies, something currently illegal in India.

 

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