To increase its gold production capacity, Bengaluru firm Deccan Gold Mines has forayed into the critical mineral sector

The company currently operates two gold mines, the Jonnagiri Gold Project in Andhra Pradesh and the Altyn Tor Gold Project in Kyrgyzstan, while its third gold mine in Finland is currently in the exploration and drilling phase and expects to find 8 tonnes of gold from 2030 and a target production of 600 kg per year. Photo credit: File photo

Deccan Gold Mines Ltd., a Bengaluru-based mining firm, on Thursday announced a major expansion in gold production as well as its foray into the critical minerals segment.

The company currently operates two gold mines, the Jonnagiri Gold Project in Andhra Pradesh and the Altyn Tor Gold Project in Kyrgyzstan, while its third gold mine in Finland is currently in the exploration and drilling phase and expects to find 8 tonnes of gold resources from 2030 and a target production of 600 kg per year.

The Jonnagiri gold mine produces more than 1 kg of gold every day; its production is expected to increase to 400-600 kilograms per year by 400-500 kg in fiscal year 2026-2027 and the company aims to produce 1.2 to 2 tonnes of gold per year from this mine from 2030 onwards, said Hanuma Prasad Modali, managing director, Deccan and City media conference. Located in Kurnool district, Jonnagiri was recently officially renamed as Swarnagiri by the Chief Minister of Andhra Pradesh.

Deccan Gold’s newly formed Kyrgyz project comes with an initial production capacity of 300 kg of gold per year, with production expected to reach 700 kg per year at peak capacity over the next five years. The company has already invested ₹350 crore in the project and the mine employs more than 400 local workers. A total of 160 Indian workers, including 30 Indian engineers and technical experts, were involved in the construction of the plant.

According to Mr. Modali, India has the geological potential to produce 100 tonnes of gold per year against the current production of 1.5 tonnes, which contrasts with China’s annual gold production of 400 metric tonnes.

He also said regulatory issues and policy changes are creating hurdles and delaying or substantially halting the pace of gold mining in the country. For example, he said about 35 minable gold blocks identified by Deccan gold mines in several states including Karnataka, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Nagaland, Arunachal Pradesh and Chhattisgarh have been stopped by the government. “In fact, the government in India earns a high royalty percentage of 5.28% from its gold production, while it is 5% in Kyrgyzstan and 3% in Finland,” he added.

Deccan Gold has diversified into critical minerals, reflecting their importance in battery, energy storage, electronics, automotive, space and defense applications, Mr. Modali said.

Published – 17 Sep 2026 23:21 IST