Deccan Gold Mines eyes critical minerals; gold output target set at 700–750 kg
The company is expanding its exploration portfolio overseas while planning investments to increase gold production and develop existing resources.
Deccan Gold Mines is expanding its focus to include critical minerals, with exploration for tungsten in Spain and lithium in Mozambique. The company is ramping up gold production at its Jonnagiri mine, which currently yields 35–40 kg of gold per month and aims for annual production of 700–750 kg by FY28. Managing Director Dr Hanuma Prasad Modali stated that additional investment is required to transition from open-pit to underground mining, involving shaft sinking and ventilation upgrades.
The planned capacity increase to 2,500 tonnes would necessitate extra equipment and infrastructure, and longer extraction periods would yield higher-grade ore of 3–3.5 grams per tonne. A four-year production ramp-up from the current 300 kg to the projected 700–750 kg is anticipated. The Jonnagiri project is expected to last 12–15 years based on existing resources.
Modali also highlighted potential near-term production from Kyrgyzstan, where tailings and low-grade stockpiles could provide gold recovery of 40–50% during crushing and an additional 40% through chemical leaching. The company plans to begin drilling a Finnish gold project in February, aiming for 6–8 tonnes of resources, with production set to commence around 2029–30.
The estimated capital requirement for the next two to three years is ₹2,500 crore, with plans to secure funding through debt, market-based methods, and government subsidies for critical minerals projects.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
