Bengaluru firm Deccan Gold Mines to up its gold production capacity, forays into critical mineral sector
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The company currently operates two gold mines, Jonnagiri Gold Project in Andhra Pradesh and Altyn Tor Gold Project in Kyrgyzstan, while its third gold mine in Finland is currently in the exploration and drilling stage, expecting to find 8 tonnes of gold resources and a target production of 600 kgs annually from 2030. | Photo Credit: File photo
Deccan Gold Mines Ltd., a Bengaluru-based mining firm, on Thursday announced significant expansion in gold production and also its foray into the critical mineral segment.
The company currently operates two gold mines, Jonnagiri Gold Project in Andhra Pradesh and Altyn Tor Gold Project in Kyrgyzstan, while its third gold mine in Finland is currently in the exploration and drilling stage, expecting to find 8 tonnes of gold resources and a target production of 600 kgs annually from 2030.
Jonnagiri gold mine produces more than 1 kg of gold every day; its production is expected to go up to 400 to 600 kilograms annually by 400–500 kg in FY2026–27, and the company has a target to produce 1.2 to 2 tonnes of gold in a year from this mine from 2030, said Hanuma Prasad Modali, Managing Director, Deccan Gold Mines, while addressing a media conference in the city. Jonnagiri, located in Kurnool district was recently officially renamed as Swarnagiri by Andhra Pradesh Chief Minister.
Deccan Gold’s newly set-up Kyrgyzstan project comes with an initial production capacity of 300 kg of gold per annum, while at peak capacity in the next five years, it is expected to produce upwards of 700 kgs per annum. The company has already invested ₹350 crore in the project, and the mine facility employs over 400 local workers. A total of 160 Indian personnel were involved in plant construction, including 30 Indian engineers and technical professionals would be deployed.
According to Mr. Modali, India has the geological potential to produce 100 tonnes of gold per annum against its current production of 1.5 tones, just opposed to China’s annual gold production of 400 metric tonnes.
He also said regulatory issues and policy changes were creating roadblocks and were delaying or substantially halting the pace of the gold mining industry in the country. For instance, he said some 35 gold-minable blocks identified by Deccan Gold Mines across several states, including Karnataka, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Nagaland, Arunachal Pradesh and Chhattisgarh, were stopped by the government. “In fact, in India, the government earns a high percentage royalty of 5.28% from its gold production, while it is 5% in Kyrgyzstan and 3% in Finland,’’ he added.
Deccan Gold has diversified into critical minerals, reflecting their importance to batteries, energy storage, electronics, automotive, space and defence applications, Mr. Modali stated.
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