Sonbhadra in Uttar Pradesh is in the news as Geology and Mining department has said that a potentially largest gold reserve in the country. Geological Survey of India has cited its prospecting records of last 15 years to say that deposits of about 3000 tons of gold can be found in Sonbhadra goldmines. Gold deposits of such huge quantity are great news for the Indian economy as it will further strengthen the country's gold reserves.
Gold worth more than Rs 10 lakh crore:
The current market price of gold is Rs 41,000 per 10 grams. This means that 1 Kg of gold will cost Rs 41 lakh and 1 ton of it will cost Rs 410 crore. Sonbhadra mines are projected to have 3000 tons of gold. This means that the total cost of gold is more than 12.3 lakh crore.
Massive increase in India's gold reserve
If 3000 tons of gold in Sonbhadra is added to India's gold reserves, it will make our country's gold reserves next to those of the USA, the country with the biggest gold reserve in the world. Addition of Sonbhadra gold to Indian reserves will boost them to 3633 tons.
USA has 8133 tons of gold while Germany (currently at number 2) has 3366 tons of gold.
No gold imports needed!
3000 tons of Sonbhadra gold would mean that India would not have to import gold for the next 5 years. This would mean that India will be in a position to save foreign currency in its forex reserves. According to the World Gold Council, India imported 646 tons of gold in the year 2019.
3000 tons of gold and jewellery:
3000 tons of gold may satisfy the Indian market's hunger for jewellery for the next 6 years
Global gold demand can be fulfilled for 8-9 months:
3000 tons of gold in Sinbhadra can fulfil the world's gold demand for 8-9 months. According to the World Gold Council, there is a demand for 4000-4500 tons of gold worldwide. This means that if all of Sonbhadra's gold is mined, it can fulfil global demand for 8-9 months.
However, it is unlikely that 3000 tons of gold will be extracted from Sonbhadra goldmine as it is the weight of gold ore, that needs to be refined and processed to get the gold in daily life.
Watch | Gold deposits found in Sonbhadra district by GSI and Uttar Pradesh Directorate of Geology & Mining