India’s first large-scale private gold mine, located at Jonnagiri in Andhra Pradesh, is poised to begin full production soon. Deccan Gold Mines Ltd (DGML) Managing Director Hanuma Prasad confirmed that the mine, developed by Geomysore Services India Ltd (in which DGML holds a stake), is completing project stabilization and finalizing plant technology before scaling up operations.
Approvals and Environmental Clearance
The Jonnagiri project received environmental clearances in June and July and is awaiting additional state approvals. These regulatory steps mark the final stage before full-scale gold production begins.
Production Capacity and Impact
The mine is expected to produce 750 kg of gold annually at launch, with potential to scale up to 1,000 kg within two to three years. Currently, India produces around 1.5 tonnes of gold annually; the addition from Jonnagiri will increase domestic output by nearly one tonne.
Significance for India’s Gold Market
India imports nearly 1,000 tonnes of gold each year, making it the country’s second-largest import after oil. The Jonnagiri mine is therefore expected to reduce import dependence and boost domestic gold supply.
Location and Company Background
The mine spans the Jonnagiri, Erragudi, and Pagadirayi villages in Kurnool district, Andhra Pradesh. Founded in 2003, DGML is India’s only listed gold exploration company with assets not only across the country but also in Kyrgyzstan, Finland, and Tanzania. The promoters have deep roots in the exploration and mining sector, positioning the company for long-term growth.
