Private gold mining venture by Deccan Gold Mines, India's largest, gearing up for launch: Managing Director revealed
The gold mining industry in India is on the brink of a significant transformation with the commissioning of the Jonnagiri mine, a historic event that marks a new era for the sector. Hanuma Prasad, Managing Director of Deccan Gold Mines, the company set to start production at Jonnagiri this year, has suggested that this project could serve as a catalyst for future investments in India's gold price sector.
The Jonnagiri gold mine, developed by Geomysore Services and Deccan Gold Mines, is located in Andhra Pradesh. This will be the first new gold mine in India in nearly eight decades, a testament to the long-awaited revival of the price of gold industry. Deccan Gold Mines will be a minority shareholder in the project.
Prasad has expressed optimism about the potential impact of the Jonnagiri project, stating that its success could pave the way for a broader revival of India's gold mining sector. He believes that domestic production could help reduce the country's heavy reliance on gold imports, a trend that has seen India import 99% of its gold and produce only around 1.5 tonnes domestically.
Despite high global prices, India's gold imports may cross 1,000 tonnes this year, according to Prasad. He argues that policy reforms are needed to boost domestic production and make it economically viable. The government has taken steps in this direction by reducing import duties, but Prasad believes more needs to be done.
Prasad also highlighted the importance of cultural factors and economic performance in influencing gold demand in India. He noted that despite high prices, gold remains a popular asset in India, with many households holding gold as a form of savings. However, he warned that gold mining is a capital-intensive and high-risk industry, requiring a lot of exploration and risk capital.
The commissioning of the Deccan mine, another gold mining project in India, is also considered a historic moment for the industry. The companies involved in developing India's first private gold mining project at Jonnagiri in Andhra Pradesh are Hyderabad-based My Home Group and Karimnagar-based Megha Engineering & Infrastructure.
Prasad's vision for the future of India's gold mining sector is one where domestic production plays a significant role in meeting the country's gold demand. He suggests that the Jonnagiri project could serve as a catalyst for attracting more investments and fostering a more robust gold mining sector in India.
