NMDC to invest in first gold block

NMDC is likely to invest around Rs 500 crore in its planned first foray into gold mining. NMDC is on track to secure a lease for the Chigargunta-Bisanatham gold block soon, having signed a letter of intent over the project with the state government late last year.According to local rules, it must secure the mining lease for the gold block within three years of signing the letter of intent. The block, located in the Chittoor district of the southern state of Andhra Pradesh, has estimated gold reserves of around 1.83 MT, containing 5.15 grams of gold per tonne.The company plans to appoint a consultant to help seek government clearances, such as environmental approvals, the source added.India meets more than 90% of its gold demand through imports, spending $36.6 billion on overseas purchases of the precious metal in 2022, and a record $55.8 billion in 2021. Currently state-run Hutti Gold Mines, based in the neighbouring Karnataka state, is the country's only major gold producer.