The History of Kolar Gold Fields (K.G.F.) in Karnataka, India

Introduction: What is Kolar Gold Fields (K.G.F.)?

Kolar Gold Fields is a mining company that operates in the Kolar district of Karnataka, India. It was founded in the year 1857. The company has a number of mines located in the Kolar district. They are primarily engaged in gold mining and processing. Kolar Gold Fields is one of the oldest gold mines in India. The Company is also one of the largest employers in Karnataka with more than 10,000 employees worldwide. It has been operating for more than 150 years and has a wide variety of mineral reserves to explore for future growth prospects.

History of Kolar Gold Fields (K.G.F.) in Karnataka, India

Kolar Gold Fields (K.G.F.) was established in 1884 and was the first gold mine of its kind in India. It is located about 100 km from Bangalore and about 350 km from Chennai. The Kolar region has been known for mining for more than 2,000 years and this is the reason why it is considered to be one of the most important regions in the country when it comes to mining. The company’s history can be divided into two parts: - The first part of its history covers a period of nearly 100 years, which includes its establishment in 1884 to 1947 when it was nationalized by the Indian government; - The second part covers a period of more than 60 years, which includes 1947 to 2007 when KGF was owned by the British company Vedanta Limited. In 1884, the Kolar Gold Fields was established as the first and only privately owned gold mine in India by a British engineer named Samuel Clemens (S.Clemens). In 1886, Clemens sold his shares of the KGF to a group of investors led by S.Clemens's brother-in- law, Henry Hunt. On June 3, 1887, KGF was sold to the government of India for 200 thousand pounds sterling. The company continued to grow and by 1910 it had over 500 employees working in three shifts a day in its mines. This period also saw an increase in production that continuously increased to 6 million troy ounces annually by 1936 after new high-grade ore was discovered. As the company grew, it expanded its operations by buying local companies and land. In this way, KGF became the biggest gold producer in India. Following World War I, the British government confiscated KGF's mines under a war-time statute that allowed them to take over foreign owned properties which were deemed "essential" to national defense. This meant that KGF lost its independence and had to work with the government of British India. After this, production at the mines declined. In 1938, KGF bought back its mines from the government and continued operations on a reduced scale until 1947 when India was granted independence from Great Britain. The first mine that Clemens established in 1884 was in Penumantra in the present-day state of Tamil Nadu. KGF faced a severe decline in production during the 1940s and 1950s. In 1950, it closed its mines at Penumantrai. With the increase in supply following World War II, demand for gold decreased and production was further reduced as labor costs increased and investments dwindled. Further, KGF found it hard to compete on the international market with all its reserves. In 1972, KGF acquired a producing mine at Tuath in Poona district. Production from that mine had increased through the 1970s and 1980s. In 1993, KGF acquired additional gold mining properties at Perdippatti in Channapatna and Mysore districts for US$46 million. In 2010, KGF was the fourth-largest gold producer in India. Its production that year was 636 tons. The Canadian mining conglomerate Barrick Gold Corporation acquired KGF in September 2010 for US$24 billion, making it one of the largest ever acquisitions of an Indian company by a foreign firm, and making it the world's fifth -largest producer of gold.

Conclusion: Brief Summary of Kolar Gold Fields (K.G.F) History

Kolar Gold Fields Limited is a gold mining company in India. It was incorporated on 12th June, 1948 and its headquarter is located in Bengaluru. The company operates three mines: Kolar Gold Fields, the Rajkot Mine and the Gudamalai Mine.

Kolar Gold Fields Limited has been listed on the Bombay Stock Exchange since 1948. The company is one of India’s oldest public sector enterprises and has been producing gold for over 50 years. KGF also has a strong track record of producing high quality gold with low production costs.