Private Gold Mining in India: Jonnagiri project to reduce country’s heavy gold imports

Decan Gold Mine Limited (DGML), the first and only gold exploration company listed on the BSE, holds a stake in Geomysore Services India Limited, the developer of the Jonnagiri gold project in Kurnool district, Andhra Pradesh.

Amaravati: India's first large private gold mine is set to commence operations in Andhra Pradesh, with full production expected very soon. This move is a major achievement for the country, as India currently imports approximately 1,000 tonnes of gold annually, the second-largest import after crude oil.

Decan Gold Mine Limited's Key Role

Decan Gold Mine Limited (DGML), the first and only gold exploration company listed on the BSE, holds a stake in Geomysore Services India Limited, the developer of the Jonnagiri gold project in Kurnool district, Andhra Pradesh. Following this news, DGML shares rose by approximately 9.95% on Thursday, although the stock had fallen by approximately 12% over the past year.

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Current Status of the Project 

DGML Managing Director Hanuma Prasad stated that the Jonagiri project received environmental clearance in June and July, while other state-level approvals are also in progress. He said, "The project is undergoing stabilization... only the plant technology is being worked on... full-scale production will commence soon."

This gold mine is expected to produce approximately 750 kilograms of gold annually, which will be increased to approximately 1,000 kilograms in two to three years. India currently produces only 1.5 tons of gold per year. Prasad said, "Once our mine is operational, gold production will increase by approximately one ton."

Geographic Location of the Mine 

The Jonagiri mine is located near Jonagiri, Erragudi, and Pagadirayi villages in the Tuggali Mandalam of Kurnool district. Established in 2003, DGML has built a strong portfolio of mine assets in India and abroad, including in Kyrgyzstan, Finland, and Tanzania.

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A New Revolution in India's Gold Production

This initiative could prove to be a new revolution in gold mining for India. The country's burden of massive gold imports will be reduced and domestic production will increase. This will also boost the domestic gold industry and contribute to economic growth.

Thus, with the successful operation of the Jonnagiri project, India's dream of becoming self-reliant in the gold sector may soon become a reality.