Bharat Gold Mines Limited

1. INTRODUCTION

1.1 Bharat Gold Mines Limited (BGML) became a Public Sector Undertaking (PSU) under the Department of Mines in 1972. It is primarily engaged in mining in its captive mines in Kolar Gold Field (KGF), Karnataka and Andhra Pradesh and production of gold in KGF. As a diversification, the Company also undertakes mine construction, shaft sinking, manufacture of mining machinery and other fabricated items for outside clients for which it has set up a Mine construction and Engineering Division.

2.0 PRODUCTION PERFORMANCE

2.1 The quantity of ore milled, gold and silver produced during 1997-98 are given below:

Actual 1996-97 Target for the year 1997-98 Actual 1997-98
Ore Milled (tonnes) 225266 205700 151381
Gold Extracted (Kg.) 692.32 650.0 514.1
Extraction Grade (g/t) 2.95 3.00 3.24
Silver Extracted (kg.) 70.2 --- 43.6

3.0 FINANCIAL PERFORMANCE

3.1 The authorised share capital of the company is Rs. 60 crores and paid up share capital is Rs. 51.06 crores as on 31.03.1998. The working results of the Company for the last two years and the anticipated results for the current year show the following position.

Year Net Loss (Rs. in Lakhs)
1995-96 4406.32
1996-97 5379.94
1997-98 6660.31(Provisional)

SOURCES OF FUNDING :

3.2 As the company is continuously incurring losses and unable to generate any internal resources, the investment on the capital schemes is met by the Govt. by way of Plan loans to the Company. The Department has released Rs.590 lakhs as Plan loan towards the capital expenditure during 1997-98.

4.0 PRESENT POSITION :

4.1 The Company has been making continuous losses since its inception except two years 1979-80 and 1980-81. Since the net worth of the Company became negative it was referred to BIFR, who in turn declared the Company as sick. The Cabinet in its meeting held on 24.06.1997 approved the following in respect of rehabilitation of BGML.

  1. Board for Industrial and Financial Reconstruction (BIFR) be informed that the Operating Agency's (OA) rehabilitation scheme in respect of BGML which would necessitate fresh infusion of funds by Government is not acceptable to the Government.
  2. BIFR be further informed that Government are exploring the possibility of associating a private co-promoter(s) with a view to rehabilitating BGML through the joint venture route under an agreed package.
  3. If (ii) above does not fructify, BGML may be allowed to be wound up under the provisions of the Sick Industrial Companies (Special Provisions) Act (SICA), 1985.
  4. Department of Mines, in association with BGML, be authorised to offer BGML for conversion into a joint venture company for the purpose of the revival and rehabilitation of the Company; to obtain offers; to evaluate them and to place its recommendations in the matter before the Cabinet for its approval and thereafter before BIFR for sanction of the scheme; and
  5. Reduction of surplus manpower in all categories through Voluntary Retirement Scheme (VRS) from National Renewal Fund (NRF) may continue only till 31st August, 1997 subject to VRS in respect of employees in essential/statutory/strategic categories giving option before 31st August, 1997 being accepted subsequently after 31st August, 1997.

4.2 In pursuance of the Government decision, a Committee under the Chairmanship of Additional Secretary (Mines) has been constituted for giving its recommendations regarding the selection of joint venture partner(s). The Committee is expected to submit its report shortly.

5.0 DIVERSIFICATION

5.1 The Company has diversified its activities in the following fields:

  1. Shaft Sinking and Mine Construction
  2. Manufacture of Mining Equipment and fabrication and machineries of components.

6.0 SHAFT SINKING AND MINE CONSTRUCTION

6.1 The Projects and Contracts Division established in 1973 has been taking contract jobs in shaft sinking and mine construction activities for various mining companies in both coal and metal mines in the country.

6.2 The Division has so far completed 68 jobs valued at Rs. 74 crores for its customer companies spread all over the country. It is executing 8 contracts, at present, valued at Rs. 36 crores in addition to contracts valued at Rs. 3.50 crores under negotiations.

6.3 This Division endeavours to maximise its contribution to the Company's fixed costs by better control and improving the quality of services to the clientele avoiding problem areas. The Company envisages undertaking contracts of high values and to execute the jobs by sub-contracting to local contractors wherever possible to cut down costs.

7. MANUFACTURE OF MINING EQUIPMENT AND FABRICATION OF COMPONENTS

7.1 As part of diversification activity and to generate additional revenue from the workshops, the engineering jobs are undertaken viz. manufacture and sale of mining machinery and equipment like winders, suspension gears, head gears, man-riding systems, skips, ore-bins, various safety gadgets, battery operated locomotives, car circuits systems, material handling systems, CIP and Electro winning cells, GOLD DRILL TCT rods etc. besides jobbing work like fabrication and machining for other major industries.

7.2 The Division reached a turnover of Rs. 250.00 lakhs during 1997-98 besides catering to the captive needs of the metallurgical and Mining operations.

7.3 The Engineering Division has secured orders worth Rs. 316.96 lakhs during 1997-98 from reputed industries like Bharat Earth Movers Limited, Wheel and Axle Plant and Mining companies, both public and private sector enterprises like Hindustan Zinc Limited, Manganese Ore India Limited, subsidiaries of Coal India Ltd., namely Eastern Coal Fields Limited, South Eastern Coal Fields Ltd. Hutti Gold Mines Limited, Pyrites, Phosphates and Chemicals Limited, Neyveli Lignite Corporation, TISCO etc. against stiff competition.

8. ACHIEVEMENTS DURING 1997-98

8.1 The sales made upto March, 1998 and orders position on hand as 31st March, 1998 are as follows:

(Rs. in Lakhs)

Description Quantity Orders on hand values Sales Work in Progress
TCT Drill Rods 442 9.40 53.04 2.00
Workshop-Sales --- 865.75 180.75 125.62

9 EXPLORATION ACTIVITIES :

a) Mysore Champion Amalgamated Mine:

Limited stope preparatory development and stopping was carried out in Glen's Tennants and Hancock's Shafts of the mine.

b) Old Bisanatham Mine:

Stope preparatory work was undertaken between 150' L and 425'L of the mine.

c) Yappamana Mine:

Exploratory development was carried out at 7th level and stope development of BG ore shoot were carried out.

d) Chigargunta Mine:

Exploration development at 4th level of East Chigargunta Shaft and South Boundary shaft was carried out in E-2 lode of mine - 1. Stone preparatory development was also carried out on E-2 lode in VE. III & IVE. 5 Bs block.

9.1 GEOLOGICAL SERVICES

Geological mapping was carried out in the mines. Geological support was provided to the mines in budget Preparation, dilution control and trade monitoring. ROM ore fed to the mill and the mill residues were sampled on daily basis. The ore reserves of different mines are being updated.

10. ENVIRONMENTAL PROTECTION :

10.1 Since 1981-82 the Company has taken up afforestation programme on tailing dumps as a pollution control measure and on the barren lands to improve the ecology in a phased manner. Different species like Eucalyptus, Sandalwood, Accacia, Airculiformis Sissoo, Bevu, Honge, etc. have been planted over 3230 acres of land as on date at Kolar Gold Fields and Gadag in Karnataka and at Ramagiri, Old Bisanatham and Chigargunta in Andhra Pradesh.

11. POLLUTION CONTROL:

DOMESTIC WATER TREATMENT

11.1 The effluent after treatment is collected in the oxidation ponds construction in Mysore Mine, Champion Reef and Nundydroog Mine areas. These works have been carried out as per the recommendations of Karnataka State Pollution Control Board and National Environmental Engineering Research Institute. A Water Treatment plant has been setup at Chigargunta mine to provide potable water to the employees.

INDUSTRIAL EFFLUENT TREATMENT

11.2 Additional three bunds to prevent overflow of slurry have been constructed over the tailing bund at Nundydroog mill area. One earthen dam has been constructed near Mysore Mine dumb area to prevent washing away of tailings sand due to rain.

12. WELFARE OF tribals and minorities

12.1 There are directives/guidance from the Ministry of Welfare with regard to preparation of Sub-component plan for Schedule Caste and Tribal sub-plan for Schedule Tribes. This is linked with rehabilitation of tribals on account of land acquired for project. BGML has not acquired any land causing displacement of Tribals for the construction of projects and hence no plan for rehabilitation has been drawn.

12.2 Minority group members have been nominated to represent in recruitment and promotion committees to safeguard the interest of minority groups. Their grievances are promptly attended to and settled.

12.3 RECRUITMENT OF MINORITIES AND SC/STs IN THE COMPANY :

During the period no recruitments were made.

12.4 STATEMENT SHOWING THE TOTAL NUMBER OF EMPLOYEES AND THE NUMBEr OF SC/ST AMONG THEM AS ON 31.3.1998

Group Total Employees SC % ST %
A 128 27 21.09 4 3.12
B 19 5 26.31 - -
C 2370 927 39.11 18 0.76
D 1828 1075 58.80 24 1.31

No. of employees - Technical and Non-Technical as on 31.03.1998 are as follows:

Technical - 2336

Non-Technical - 2009

Total - 4345

13. PERSPECTIVE PLAN FOR WOMEN WELFARE

13.1 As a part of 20 point programme, a separate cell known as Community Development Cell has been formed in 1987 to encourage certain self-employment programmes. At present 40 ladies are engaged in weaving, manufacture of handgloves, helmet liners, phenyl, etc.

14.0 POWER CONSUMPTION

14.1 There was a decrease in the consumption of power during the year 1997-98 by 16% when compared to the previous year despite extensive dewatering in KGF Mines. The details of power consumption are given below:

Year Units Consumed (In Lakhs) Saving during 1997-98 Over 1996-97 (Lakh Units) %age of Savings
1996-97 419.88 --- ---
1997-98 353.24 66.64 16%