India is set to witness its first operational gold mine since Independence, as Deccan Gold Mines gears up to begin production next fiscal year. The landmark project is expected to yield 400 kilograms of gold annually and marks a significant step toward reducing the country’s reliance on imports
In a historic development for India's mining sector, Deccan Gold Mines Ltd. is set to begin production from the country's first operational gold mine since Independence. The mine, located in Karnataka, is expected to yield 400 kilograms of gold starting next fiscal year, marking a major milestone in India's efforts to tap into its untapped mineral wealth.
The announcement has sparked a rally in Deccan Gold’s stock, with shares rising 14% to reach a 10-month high, as investor optimism surges around the project’s potential and long-term impact on domestic gold supply.
The mine is part of the Jonnagiri Gold Project in Andhra Pradesh, being developed by Deccan Gold through its subsidiary, Geomysore Services. This project is set to make India a gold producer of significance after decades of relying almost entirely on imports to meet domestic demand.
Since Independence in 1947, India has not seen any significant commercial gold mining operation beyond the now-defunct Hutti and Kolar gold fields. The Jonnagiri mine represents a revival of sorts — combining modern extraction technology with long-term resource planning.
Deccan Gold Mines plans to extract gold over an initial period of 8–10 years, with further exploration likely to extend the project lifespan. The first year alone is expected to produce about 400 kg of gold, potentially reducing India's dependence on imports — which currently account for over 90% of the country’s gold supply.
India is one of the world’s largest consumers of gold, both as investment and in jewellery. A domestic gold source is expected to help cushion volatility in import costs and strengthen the country’s position in global bullion markets.
The development is also aligned with government efforts to encourage domestic mining and self-reliance in key resources, under initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’.
Following the announcement, Deccan Gold Mines' stock surged by 14%, reflecting positive market sentiment and strong investor confidence in the project's viability and future scalability.
This move is seen as a critical turning point — not just for Deccan Gold Mines, but for India's entire mining landscape.
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