By News Desk 
India, despite being one of the largest consumers of gold globally, has very limited domestic gold reserves. Most of its demand has historically been met through imports. However, this scenario is set to shift with a major discovery — a new gold mine has been found in Andhra Pradesh’s Kurnool district, specifically in the Jonnagiri region.
This is the first significant gold mine to be developed in India since independence and marks a milestone in the country’s mining and resource sector.
India’s First Large Private Gold Mine
The Jonnagiri Gold Project, managed by Deccan Gold Mines Limited (DGML), is expected to begin production soon. In its first year, the mine is projected to produce 400 kilograms of gold, with full capacity aiming for 750 kilograms annually. This makes it India’s first major privately operated gold mine.
This development comes after nearly 80 years, making it a historic moment for the Indian mining industry.
Joint Venture and Investment
DGML has invested around ₹200 crore into the project so far. A 40% stake in the company is held by Geomysore Services India Pvt Ltd, which is leading the development efforts. Together, these companies are working to turn Jonnagiri into India’s most prominent private gold mining site.
Government Approvals and Trial Runs
The Andhra Pradesh Pollution Control Board has already given environmental clearance for both the mining operation and the processing plant. Trial runs will be conducted over the coming months to ensure all systems function smoothly before full-scale production begins.
Potential Revenue in the Hundreds of Crores
The extracted gold will be sold to nearby refineries. The company expects that 400 kg of gold in the first year could generate ₹300–₹350 crore in revenue, with an EBITDA margin of around 60%. Full financial returns are expected by FY2027.
Deccan Gold Mines Stock Surges
Following the announcement of mining approvals, Deccan Gold Mines Ltd. saw its stock surge nearly 10%, closing at ₹163.70 on Thursday — the stock’s highest price in 10 months. Investor confidence has grown significantly around the project.
In the past year, the company’s share value has risen by approximately 60%, including a 46.7% increase since early 2025.
Estimated Gold Reserves and Long-Term Potential
According to surveys conducted by Geomysore, the open-pit mine at Jonnagiri holds an estimated 6.8 tonnes of extractable gold. With further drilling, total reserves could reach up to 14 tonnes, potentially extending the mine’s lifespan to 15 years.
All Necessary Approvals in Place
The project has secured all key government clearances, including:
- Consent for Establishment (CFE)
- Consent for Operation (CFO)
- Environmental Clearances
The Indian Bureau of Mines had approved the mining plan back in 2008, while the environmental clearance remains valid until 2043, ensuring long-term operational stability.
Economic Impact and Employment Opportunities
Beyond boosting gold production, the Jonnagiri Gold Project is expected to provide significant employment opportunities to local communities and contribute positively to the national economy. The mining operation will start with a capacity of 1,000 tonnes per day, which could be doubled to 2,000 tonnes in the future.
With this project, India takes a major step towards self-reliance in gold production, potentially reducing its dependency on imports in the long term.