India’s First Large Private Gold Mine in Andhra Pradesh Set to Begin Full-Scale Production: DGML MD

India is on the cusp of a milestone in its mining sector. Deccan Gold Mines Ltd (DGML) has announced that its Jonnagiri gold project in Andhra Pradesh — the country’s first large-scale private gold mine — is expected to move into full-scale production very soon. The announcement was made by DGML’s Managing Director Hanuma Prasad at the CII India Mining Summit 2025.

Key Details of the Project

Location:

• The mine is located in the Kurnool district of Andhra Pradesh, in Tuggali Mandalam.

• Specifically near the villages of Jonnagiri, Erragudi, and Pagadirayi.

Developers:

• DGML holds a stake via its associate/partner company Geomysore Services India Ltd.

• DGML is listed on the Bombay Stock Exchange (BSE) and is one of India’s prominent gold exploration companies.

Regulatory Clearances:

• Environmental clearance was obtained in June–July 2025.

• State-level approvals are in the process or have been sought.

Production & Capacity Projections

• When full-scale operations begin, the mine is expected to produce about 750 kilograms of gold per year.

• DGML aims to scale this up further. In 2–3 years, the plan is to increase output, with ambitions as high as 1,000 kg per annum.

• To put it in perspective, India’s current annual gold production is very low (around 1.5 tonnes), so this project would add nearly one more tonne to domestic output once it is operational.

Significance & Implications

Import Dependency:

• India currently imports approximately 1,000 tonnes of gold annually.

• The start of production at Jonnagiri could begin reducing that dependency, though full impact will depend on scaling, yield, global prices, and costs.

Strategic & Economic Impact:

• As India’s first large-scale private gold mine, this could pave the way for more private participation in gold mining.

• It strengthens the domestic mining and exploration ecosystem, offering potential employment, infrastructure development in Kurnool, and ancillary benefits.

• Also aligns with policy emphases on self-reliance in mineral resources.

Challenges & What’s Left to Be Done

• Technology & Stabilisation: DGML notes that the plant’s technology is still being worked out, and the project is in a stabilisation phase.

• State Clearances & Local Permissions: While environmental clearance is in place, state‐level clearances are still being sought. These can sometimes delay operations.

• Scaling Up Production: Moving from the initial capacity to a bigger scale will require investment, effective operations, skilled labor, and robust supply chains.

Timeline & Outlook

• The announcement in September 2025 signals that full-scale production is imminent. DGML is expected to begin full operations very soon.

• Over the next 2–3 years, there is expectation of ramping up production further.

The Jonnagiri gold project by DGML represents a watershed moment for India’s mining sector. With environmental clearance secured and full-scale production just around the corner, it could mark the beginning of a stronger domestic gold production trajectory. While there are hurdles to clear — technological, logistical, regulatory — this project has the potential to reduce import dependence and catalyze further private investment in India’s mineral exploration and mining domain.