State miner NMDC says it has won race for Indian gold mine

Firm to invest $58.3 mn after outbidding Vedanta, Adani at A.P. project e-auction

Mother lode: NMDC, which may invest about $58.3 million in the project, would get a 50-year lease to operate the mine.

Indian state-owned miner NMDC is the highest bidder in a government e-auction for a gold mine in the southern State of Andhra Pradesh, beating resources conglomerates Vedanta and Adani, NMDC chairman Baijendra Kumar told Reuters.

NMDC is expected to invest about $58.3 million in the project, Mr. Kumar said without providing further detail on the company’s bid. The mine has an estimated 2.2 million tonnes of gold.

To notify winner

The state government is likely to notify NMDC as the bid winner some time next week, said Mr. Sreenivas Chowdary, Deputy Director of Mines for Andhra Pradesh, confirming that Adani and Vedanta Resources had also bid.

Both Adani and Vedanta did not immediately reply to a Reuters e-mail seeking comments.

NMDC would get a 50-year lease to operate the mine, Mr. Chowdary said.

The project would be NMDC’s first gold mine in India, Mr. Kumar said, adding that the company expects to start mining gold within two years of gaining licences.The company already has a gold mine in Tanzania.