NMDC intends to make a $61 million investment in its initial gold block.

NMDC, a state-owned Indian iron ore miner, is likely to invest approximately Rs 500 crore ($61 million) in its planned venture into gold mining. 

The source disclosed on Monday that NMDC is making progress in obtaining a lease for the Chigargunta-Bisanatham gold block, having previously signed a letter of intent with the state government for the project towards the end of last year. 

Local regulations dictate that NMDC must secure the mining lease for the gold block within three years of signing the letter of intent, it also plans to hire a consultant to assist in obtaining government clearances, including environmental approvals.

The Chigargunta-Bisanatham gold block, located in Andhra Pradesh's Chittoor district, is estimated to hold around 1.83 million tonnes of gold reserves, with a gold content of 5.15 grams per tonne.

Content Source: Media Reports