Multinational companies, including the diamond conglomerate, De Beers (now known as Diamond Trading Company or DTC), are now prospecting for gold and diamonds in the State.

According to the Director, Department of Mines and Geology, M. Basappa Reddy, companies such as Australia-India and Ramagad Mines and Minerals have been allowed to prospect for gold in Kolar, Tumkur, Chitradurga, Gadag and Raichur. DTC, Rio-Tinto (an Australian company) and BHP-Billiton have permission to prospect for diamonds in Gulbarga, Raichur, Tumkur and Chitradurga.

DTC had a processing laboratory in Peenya while Rio-Tinto had one in Whitefield, Mr. Reddy told presspersons here today on the sidelines of a seminar on "Sustainable Mining and Environment." Mining could start in two to three years, he said.

Companies could mine iron ore, manganese, chromites, bauxite, granite and base metals in 54 taluks, he said. Asked about plans for Kolar Gold Fields (KGF), Mr. Reddy said it might be possible to reprocess the over 30 million tonnes of tailings at KGF as those contained 0.7 gm of gold a tonne. Or, the tailings could be worked with other deposits in the area. "If Australia-India, which has two reconnaissance permits in Kolar, sets up an opencast mine, it can work KGF too," he said. The project would require an investment of Rs. 100 crore.

Earlier, at the seminar, Mr Reddy said Karnataka now produced minerals worth Rs. 12,000crore to Rs. 15,000 crore a year. That could double in five years' time. Besides, mining employed many rural poor who were paid much better than workers in other sectors. Regions around the mines would also be developed. "Mining cannot be stopped but it must become more environmentally sustainable." He said the National Environmental Engineering Research Institute (NEERI) had done a two-year survey of the Hospet-Bellary region to study the impact of mining there. "NEERI says mining can continue and production can go up to 30 million tonnes provided there are safeguards," he added.

P. Ganeshan, Chairman and Managing Director, Kudremukh Iron Ore Company Ltd., spoke on "Industry Views on Project and Environmental Clearances."