Now Reading: Deccan Gold Mines eyes Rs 2,500 crore to boost gold output
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Deccan Gold Mines eyes Rs 2,500 crore to boost gold output
Deccan Gold Mines expects to produce 700-750 kg of gold annually from its Jonnagiri (Swarnagiri) mine in Andhra Pradesh by FY28, up from the current 35-40 kg a month. The company needs…
Deccan Gold Mines expects to produce 700-750 kg of gold annually from its Jonnagiri (Swarnagiri) mine in Andhra Pradesh by FY28, up from the current 35-40 kg a month. The company needs about Rs 2,500 crore over two to three years to fund this expansion, including a shift from open-pit to underground mining, which Managing Director Hanuma Prasad Modali said would require shaft sinking and ventilation. The underground operation is expected to yield higher-grade ore of 3-3.5 grams per tonne.
The company is also diversifying into critical minerals, with exploration for tungsten in Spain and lithium in Mozambique, and plans to seek government subsidies for those projects. In Kyrgyzstan, it will process tailings containing an estimated 700-800 kg of gold, targeting near-term production. A gold project in Finland is being drilled this month, aiming for 6-8 tonnes of resources with production from 2029-30.
Indian Opinion Analysis
Both outlets report Deccan Gold Mines' expansion plan, but with different emphasis. The Hindu leads on gold production targets for 2030, regulatory grievances, and a higher royalty figure (5.28%). BusinessLine focuses on near-term output (700-750 kg by FY28), capital requirements (Rs 2,500 crore), and critical mineral projects abroad. The divergence matters: The Hindu's framing implies policy frustration is the story, while BusinessLine treats commercial execution as primary. Neither source omits the other's headline, but each shapes the angle for its readership. The company's transition to underground mining and Kyrgyzstan tailings processing will test its timelines directly, watch FY26-27 production figures against stated targets from either outlet's figures.
Coverage: 2 sources, 1 government-critical, 1 neutral
Sources (2): thehindubusinessline.com (government critical), thehindu.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry.
