Startup Originals Team
The Jonnagiri gold project in Andhra Pradesh, developed by Deccan Gold Mines Ltd (DGML) with Geomysore Services India Ltd, is set to start full-scale production soon. The mine will be India’s first large private gold mine. Once it begins, it is expected to produce around 750 kilograms of gold annually, with plans to increase production further in the coming years.
Project & Location Details
- The mine is located in Kurnool district, across the villages of Jonnagiri, Erragudi, and Pagadirayi in the Tuggali Mandal.
- DGML, founded in 2003, is India’s only listed gold exploration company on the BSE, and holds a stake in Geomysore Services India Ltd.
Regulatory Status & Plant Readiness:
- The project received environmental clearances in June and July 2025. It is now awaiting additional state-level approvals.
- According to DGML Managing Director Hanuma Prasad, the plant stabilization work is underway, and the final technology setup of the plant is being finalized. Full-scale production is expected to begin soon.
Production Capacity & National Impact:
- Initial production is anticipated at 750 kg of gold per year, with scaling up to 1,000 kg annually envisioned within the next two to three years.
- Currently, India produces only about 1.5 tonnes of gold per year, while imports of gold are nearly 1,000 tonnes annually. Once the Jonnagiri mine is operational, it could nearly double domestic production.
Why It Matters:
- With gold being India’s second largest import after oil, this project addresses a major trade and economic concern by boosting domestic production.
- It marks a landmark moment in India’s mining sector, especially for private sector participation in gold mining, which has so far been limited.
Conclusion:
The Jonnagiri gold mine is poised to change the landscape of India’s gold mining industry. From securing environmental clearances to preparing production of 750 kg gold annually, this large private venture by DGML & Geomysore could reduce dependency on imports and push the country toward greater self-reliance. With state approvals pending and technology coming into place, the next few years will be crucial for realizing its full potential.
