Deccan Gold Mines Limited to Begin Operations at Critical Mineral Block in December

Strategic Insights -

Deccan Gold Mines Limited (DGML) will start operations at its critical mineral block in December, marking a significant step in India's efforts to secure domestic supplies of strategic resources like nickel, copper, platinum, and palladium. According to Hanuma Prasad, Managing Director of DGML, the block has strong multi-commodity potential, with expected annual production of around 10,000 tons of copper and 10,000 tons of nickel.

Prasad emphasized the importance of exploration in developing mines in India, citing the government's National Mission as a driving force behind progress in the sector. DGML, India's only listed gold exploration company, operates the Jonagiri Gold Project in Andhra Pradesh, which is expected to produce 450-500 kilos of gold in the first year and reach 750 kilos at peak. The company is also expanding its presence in the global rare-earth and critical mineral space, with ongoing due diligence for rare earth metals in Europe and southern Africa.

Key Takeaways:

  • Deccan Gold Mines Limited (DGML) will begin operations at its critical mineral block in December.
  • The block has strong multi-commodity potential, with expected annual production of around 10,000 tons of copper and 10,000 tons of nickel.
  • DGML operates the Jonagiri Gold Project in Andhra Pradesh, which is expected to produce 450-500 kilos of gold in the first year and reach 750 kilos at peak.
  • The company has three major overseas projects in Kyrgyzstan, Finland, and Mozambique, with the Altin Tor Gold Project in Kyrgyzstan being the most advanced.
  • DGML plans to set up a thousand-ton processing facility in Finland, expected to produce around one ton of gold per year for at least five years.
  • The company's project in Mozambique aims to supply India's electric vehicle sector with around 200 tons of lithium concentrate daily.
  • The investment in Mozambique is pegged at USD 30-40 million, while the Finland project will require around USD 40 million.
  • The National Mission, an Indian initiative launched in 2025, aims to strengthen India's mineral value chains through exploration, mining, and processing.

Statistics:

  • Expected annual production of copper: 10,000 tons
  • Expected annual production of nickel: 10,000 tons
  • Expected annual production of gold at Jonagiri Gold Project: 450-500 kilos (first year), 750 kilos (peak)
  • Expected annual production of gold at the Altin Tor Gold Project in Kyrgyzstan: 350-400 kilos (current), 700-750 kilos (two to three years)
  • Expected annual production of gold at the Finland project: one ton per year for at least five years
  • Daily production of lithium concentrate at the Mozambique project: 200 tons
  • Investment in Mozambique: USD 30-40 million
  • Investment in Finland: USD 40 million

Sources:

  • Hanuma Prasad, Managing Director, Deccan Gold Mines Limited
  • Deccan Gold Mines Limited (DGML)
  • National Exploration Trust (NMET)
  • National Mission (NCMM) (2025)