Gold Mining is a Big Business
The industry is worth 24 billion-dollar a year of commerce with copious amounts of future output. It takes an extraordinary amount of financial backing along with the resources and know-how to make it in the industry. And very few companies succeed.
Exploration of gold mines is difficult and complicated. It calls for a large investment of time, money, and knowledge across a wide range of academic fields, including geography, geology, chemistry, and engineering.
Less than 0.1 percent of prospected sites will result in a profitable mine, hence the likelihood of a discovery resulting in a mine being developed is extremely low. Additionally, only 10% of the world’s gold reserves have enough gold in them to warrant further development.
The gold ore body can be simulated in detail and its viability evaluated once the fundamentals of the local geology and possibly viable deposit have been determined. Gold Mining has been going on since ancient times when people discovered that gold could be found in rivers and streams.
Gold mining is still an important industry today, although the majority of gold produced comes from small-scale artisanal mining. At a country level, China is the largest producer of gold in the world, accounting for about 9% of global production. The United States is the second largest producer, followed by Russia, Australia, Canada, Peru, South Africa, Mexico, Indonesia, India, etc.
Although India is one of the largest consumers of gold in the world, the mining market operates on a small scale and is not easily penetrated. In 2020, the mining output from the gold mine will only reach 1.6 tons. India’s current resources, compared with production and resource levels in other countries, can be reasonably expected to support annual production of around 20 tons/year in the long term.
Kolar Gold Fields (K.G.F.)
Kolar Gold Fields (K.G.F.) is a mining location in the Kolar district of Karnataka, India. Its headquarters is in Robertson pet, where employees and their families of Bharat Gold Mines Limited (BGML) and BEML Limited (previously Bharat Earth Movers Limited) live. K.G.F. is around 30 kilometers (19 miles) from Kolar and 100 kilometers (62 miles) from Bengaluru, the state capital of Karnataka.
The town has been recognized for gold mining for almost a century. Despite the availability of gold, the mine was forced to close on February 28, 2001, due to a decline in gold prices. One of India’s first power plants was built in 1889 to serve mining operations. Between the 1960s and 1992, the mine complex hosted some particle physics experiments.
People in hard hats working underground is what often comes to mind when thinking about how gold is mined. Yet mining the ore is just one stage in a long and complex process. Long before any gold can be extracted, significant exploration and development need to take place, both to determine, as accurately as possible, the size of the mineral deposit, as well as how to extract and process the ore efficiently, safely, and responsibly. It can typically take between 10 and 20 years after a deposit is discovered before a gold mine is ready to produce material that can be refined into bullion.
The gold mining operation stage represents the productive life of a gold mine, during which ore is extracted and processed into gold. Processing gold involves transforming rock and ore into a metallic alloy of substantial purity – known as doré – typically containing between 60-90% gold.