India’s first large private-sector gold mine is located in Andhra Pradesh’s Kurnool district. According to reports from Deccan Gold Mines Ltd (DGML), it is gearing up to begin full-scale production soon. This is good news for the country as India currently imports nearly 1,000 tonnes of gold annually. After crude oil, gold is the second largest import for the country.
India’s First Large Private-Sector Gold Mine
DGM, the first and only gold exploration company listed on the BSE, holds a stake in Geomysore Services India Ltd, the firm developing the Jonnagiri gold project. The mine spans Jonnagiri, Erragudi, and Pagadirayi villages in Tuggali mandal of Kurnool.
The project recently crossed key regulatory hurdles.
“The Jonnagiri gold project has received environment clearance in the months of June and July, and state clearances have also been sought,” DGML Managing Director Hanuma Prasad said at the CII India Mining Summit 2025.
He added that technological work on the plant is currently 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.
Production Outlook For India’s First Large Private-Sector Gold Mine: From 750 kg to 1,000 kg a Year
Once operations begin, the mine is expected to produce around 750 kilograms of gold annually, with a planned scale-up to 1,000 kg within two to three years.
Prasad noted that India’s domestic gold output remains extremely low.
“India’s production of gold as of today is 1.5 tonnes… once our mine starts, nearly one more tonne will be added,” he said.
Long-Delayed Project Moves Ahead After Securing Permits
Although mining permits for the project were first obtained in 2006, the company required 19 years to assess ore quality and determine commercial viability. During this period, Geomysore constructed a mini processing plant to evaluate ore refining before building the full production facility.
Government support also helped accelerate progress after years of delay. A public consultation was completed in February, after which all mandatory permissions were granted, enabling the company to move swiftly toward production.
Jonnagiri Region – Rich In Gold
The company holds mining rights over 1,477.24 acres across Jonnagiri, Pagadiraai, and Erragudi villages. Geomysore, which has previously explored minerals across 35,000 sq km in multiple Indian states, has invested ₹320 to establish infrastructure for gold extraction and processing.
According to company officials, the Jonnagiri region contains around one tonnes of gold mineral reserves. The eastern block alone holds 6.8 million tonnes of gold ore at a depth of up to 180 metres.
The company is authorised to mine in the area until 2043, with approval already in place to extend operations for another 50 years if required.
Employment Opportunities At India’s First Large Private-Sector Gold Mine
The project is set to generate significant employment in the region, creating:
350 direct jobs
500 indirect jobs
To support its water needs, the company has constructed an 18-km pipeline from the Handri-Neeva canal to the factory premises.
Established in 2003, DGML’s promoters have longstanding experience in the mining and exploration sector. The company has engaged in gold exploration both in India and overseas, with assets spread across the Indian peninsula, Kyrgyzstan, Finland and Tanzania.
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
