Gold and diamond exploration will soon be fall under a single license, according to India’s new mining policy mentioned by T. Subbarami Reddy - Indian union minister of state for mines. The revision in the policy, slated to conme into effect this winter, is expected to encourage local gold and diamond production and reduce the dependency on imports.

Mr. Reddy said that India currently produces only 0.4% of its gold demand despite having 9% of gold reserves. As gold demand is expected to increase from the present 800 tonnes to 980 tonnes by 2010, the policy seems to have taken effect at the right time. The single license system is targeting to explore additional gold and diamond reserves valued upto 20,000 tonnes by 2010.

The Indian government is encouraging joint ventures between the domestic and foreign companies to set up exploration projects in India. As of now, the stat-run company, Hindustan Copper Ltd., will be extending into gold and diamond mining in collaboration with international companies. The government is holding discussions with various companies for collaborations including Indogold, Anglo American Gold Mining, Monarach Gold Mining, De Beers India Ltd., ACC Rio Tinto Exploration Ltd. and BHP Minerals.