In a significant development for India’s mining industry, Deccan Gold Mines Ltd’s Managing Director, Hanuma Prasad, has announced that the country’s maiden large-scale private gold mine, located in Andhra Pradesh, is on track to commence full-scale production by the end of the upcoming year.
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This milestone marks a pivotal moment in India’s gold mining sector, opening new avenues for domestic production and reducing the nation’s reliance on imports. The project’s progress will be closely monitored by stakeholders and investors, as it has the potential to significantly impact India’s gold supply chain and the broader economy.
The Jonnagiri gold project, in which the pilot scale operation has already started, will produce about 750 kilogrammes of gold per annum once it begins its full-scale production, Prasad told PTI in an interview.
Deccan Gold Mines Ltd (DGML), the sole gold exploration firm listed on the BSE, holds a substantial 40 percent ownership stake in Geomysore Services India Limited, the company spearheading the development of India’s inaugural private sector gold mine at Jonnagiri.
To date, approximately Rs 200 crore has been invested in the project, which is presently yielding approximately one kilogram of gold per month.
“In the Indian mine (Jonnagiri project) the construction is going on. By next year, around October-November, that will come into production,” Prasad said.
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The gold mine is located near Jonnagiri, Erragudi and Pagadirayi villages within the Tuggali Mandalam in the Kurnool district of Andhra Pradesh.
“The mine was granted…in 2013. It took about about 8-10 years to complete exploration (of the project),” Prasad explained.
Prasad further said that the commencement of production from DGML’s additional gold mining project in Kyrgyzstan, where DGML holds a 60 percent stake, is expected to take place either in October or November of 2024.
“The Altyn Tor Gold project will be producing around 400 kg gold per annum,” he added.
DGML was established in 2003 by promoters with deep roots in the exploration and mining sector. DGML for a long period of time has been involved in gold exploration activities in India and overseas. DGML’s exploration in India, particularly in Karnataka led to discovery of open pittable gold deposits in the Archaean greenstone belts of Dharwar Craton. These deposits are in Hutti and Dharwar – Shimoga belts.
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Since 2021, DGML has embarked on a path of expansion and diversification by actively engaging in merger and acquisition endeavors.
