Deccan Gold Mines is targeting annual gold production of 700-750 kg by FY28 from its Jonnagiri gold mine, which currently produces 35-40 kg of gold monthly. According to The Hindu BusinessLine, the company plans to increase the plant's processing capacity to 2,500 tonnes to achieve this ambitious target. The expansion would require additional equipment and infrastructure, with the company expecting underground operations to yield higher-grade ore of around 3-3.5 grams per tonne, supporting the increased production capacity. However, Modali noted that higher production would come only after about four years, with production of around 300 kg annually expected to continue for at least four years before the ramp-up to peak capacity.
Deccan Gold Mines is exploring near-term production opportunities from its Kyrgyzstan project, where it sees potential to process existing tailings and low-grade stockpiles. As reported by The Hindu BusinessLine, the project had been operated for 15-20 years, leaving behind tailings containing an estimated 700-800 kg of gold. The company also has around one million tonnes of low-grade stockpiles, along with about 600,000 tonnes of material at another location. These resources could support operations for four to five years at relatively low operating costs. The company expects to recover around 40-50% of the gold during the crushing stage, with a further 40% recovered through chemical leaching, resulting in overall recovery of around 90%.
Beyond existing assets, Deccan Gold Mines is preparing to drill its gold project in Finland, targeting 6-8 tonnes of resources. According to The Hindu BusinessLine, the Finnish Geological Survey had previously drilled the project and identified around 4 tonnes of gold resources. The company plans to begin drilling this month, with production targeted to begin around 2029-30. The drilling and feasibility work, followed by setting up processing facilities, is expected to take about two years. Modali emphasized that India's resource opportunity cannot be defined by its borders alone, requiring stronger domestic production complemented by Indian companies building capabilities across global mineral supply chains.
Deccan Gold is sharpening its focus on critical minerals, with overseas exploration underway for tungsten in Spain and lithium in Mozambique. As reported by The Hindu BusinessLine, the company's current portfolio includes nickel-copper-PGE in Chhattisgarh, tungsten and tin in Spain, and lithium and tantalum in Mozambique. Beyond gold assets, the company's asset portfolio encompasses nickel-copper-PGE in Chhattisgarh, India, lithium and tantalum in Mozambique, and additional holdings in Andhra Pradesh (India), Finland, and Tanzania. The company's strategy focuses on moving across the mining value chain from exploration to development, production and downstream value creation, while also pursuing processing capabilities and technology partnerships aimed at capturing greater value from strategically important mineral resources.
Modali indicated that the company could require around ₹2,500 crore in capital over the next two to three years if half of its exploration-to-development projects succeed. According to The Hindu BusinessLine, the company is evaluating debt and market-based funding, while it plans to seek government subsidies for its critical-minerals projects. Deccan Gold Mines (BSE: 512068) shares responded positively to the production milestone, with the stock trading at ₹229.80 compared to the previous close of ₹226.00. The stock hit an intraday high of ₹236.60 and intraday low of ₹222.00, with a total turnover of ₹119.76 crore during the trading session. The company continues to focus on developing technology-driven processing capabilities and mining operations across the exploration, production, and downstream value-creation spectrum.
