Wednesday, 26th April 2006 (6570 views)

An announcement made by Indian gold mining giant Hutti (HGMC) that its production has declined by 18 per cent compared to last year is expected to drive gold prices up on local stock markets, say observers.

The state-owned company, which operates the eponymously-named mine in Karnataka, announced that following a record year of 3,500 kilograms of gold output in 2005, its production has declined to 2,892 kilograms up to March this year, according to the Indian Financial Express.

Despite this drop in productivity, HGMC registered a seven per cent year-on-year rise in profits, showing that investors in the precious metal have been well rewarded by the rising prices of late.

HGMC has attributed the declining yield to a renewed focus on exploration. The company revealed that despite being allocated 528 hectares by the Indian government, it was mining only 104.

Hutti is now the only state-owned gold mining company in India following the closure of the Bharat mine at the Kolar gold fields. Sources suggest this mine is set to be opened to the public as a tourist attraction in the near future.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.