India's First Private Gold Mine Nears Launch; Shares Of This BSE-Listed Firm Surge 10%

India is set to witness the launch of its first large private gold mine in Andhra Pradesh, with full-scale production likely to begin soon. The development comes as a major breakthrough for the country, which currently imports nearly 1,000 tonnes of gold every year, making the yellow metal the second-biggest import after crude oil.

Deccan Gold Mines Ltd (DGML), the first and only listed gold exploration company on the BSE, has a stake in Geomysore Services India Ltd, the developer of the Jonnagiri gold project in Andhra Pradesh’s Kurnool district.

Following the reports, DGML’s stock surged 9.95% on Thursday. The stock is down nearly 12% in the past one year.

Hanuma Prasad, managing director of DGML, said the Jonnagiri project received environmental

clearances in June and July, while other state approvals were also underway. “The project stabilisation is going on… it is only the technology of the plant which is being worked out… full-scale production will begin very soon,” he said on the sidelines of the CII India Mining Summit 2025.

Once operational, the mine is expected to produce around 750 kilograms of gold annually, with capacity slated to expand to about 1,000 kilograms within two to three years. India currently produces just 1.5 tonnes of gold a year. “Once our mine starts, nearly one more tonne will be added,” Prasad noted.

The Jonnagiri mine is located near the villages of Jonnagiri, Erragudi and Pagadirayi in the Tuggali Mandalam of Kurnool district. Established in 2003, DGML has built a portfolio of mining assets in India as well as overseas, including Kyrgyzstan, Finland and Tanzania.

(With PTI Inputs)