India’s gold mining history has largely been defined by a few long-standing operations. The Hutti Gold Mines, operating since 1947, has been the main domestic source of gold, while the Kolar Gold Fields, which began production in 1880, dominated until its closure in 2001.
Nearly eight decades after Hutti started, Jonnagiri is set to become the first large-scale gold mine to begin production in independent India, according to Business Standard. Although a small mine in Jharkhand has operated in recent years, its output has been irregular and minimal, making Jonnagiri a far more significant development.
Private Sector Leading the Way
Unlike earlier projects, Jonnagiri is run by the private sector through Geomysore Services, backed by Thriveni Earthmovers and Lloyds Metals, which hold a majority stake, alongside Deccan Gold Mines. What makes this project unique is its integrated model: the company will mine, refine, and sell gold directly to jewellers under its own brand.
Production Goals and Ambitions
Currently in the trial phase, Jonnagiri is producing gold pre-commercially, with full-scale commercial output expected soon. The target is around 600 kg by the end of FY27, with long-term ambitions of up to 2 tonnes annually, subject to approvals, according to B Prabhakaran, associated with the project.
Why Now?
The project’s timing is strategic. Rising geopolitical tensions and the increasing cost of gold imports highlight the need for domestic production. India imports over 800 tonnes of gold annually, and domestic projects like Jonnagiri could reduce reliance on imports while encouraging further mining development.Why India Lagged Behind
India’s gold production was once comparable to top producers like China, Australia, and South Africa, averaging about 5 tonnes annually in the 1970s and 1980s. According to Hanuma Prasad Modali of Deccan Gold Mines, limited exploration and bureaucratic hurdles contributed to the decline. For decades, policy priorities focused on minerals like coal, iron ore, zinc, and copper. Even after the sector opened to private players in the 1990s, regulatory delays continued to impede growth.
