Nearly eight decades after the country’s last large-scale gold mine — Hutti in Karnataka — began operations in 1947, commercial production is set to begin at the Jonnagiri gold mine in Andhra Pradesh. Notably, the mine that began before Hutti was the now-famous Kolar Gold Fields, or KGF, which started in 1880 and was later immortalised by the blockbuster film of the same name.
More significantly, the mine will be operated by private-sector company Geomysore Services, which also plans to process the gold and sell it directly to jewellers under the Geomysore brand.
“We have commenced pre-commercial production trials and are making steady progress. We are optimistic about starting commercial production in April. By the end of FY27, we aim to produce around 600 kg of gold,” said B Prabhakaran, managing director of Thriveni Earthmovers and Lloyds Metals. Geomysore is also looking to raise output to 2 tonnes a year, subject to operational feasibility and regulatory approvals. If achieved, that would make it India’s largest gold producer, ahead of Hutti, which is reported to produce around 1.5 tonnes a year.
Geomysore is a joint venture between Salem-based Thriveni Earthmovers and Lloyds Metals, which together hold 71 per cent, and Deccan Gold Mines, which holds 28 per cent. Deccan is the first and only gold and critical mineral resource company listed on the BSE.
“The Jonnagiri gold project is India’s first large-scale private gold mine since Independence. Today, with all the geopolitical issues, importing gold has become very expensive,” said Prabhakaran.
“More than 800 tonnes come into India every year. If mines like this start operating, it will give a push to the sector. There are multiple smaller mines that can be brought into operation. A KGF-type mine should be seriously considered for restarting,” Prabhakaran added.
According to industry sources, while one small gold mine has started production in Jharkhand since Independence, output has been insignificant and irregular. Jonnagiri will be the first large-scale gold mine to begin operations after Independence. The company credits Andhra Pradesh Chief Minister N Chandrababu Naidu with fast-tracking the project by ensuring land acquisition and environmental clearances were completed within a year to a year and a half.
“We have an integrated refinery. We want to develop Geomysore as a made-in-India brand. We have started selling on a trial basis. We would like to give preference to local jewellers in Andhra Pradesh, as we have good-quality gold, mainly targeting small jewellers,” he added.
According to Hanuma Prasad Modali, managing director of Deccan Gold Mines, India, China, South Africa and Australia were each producing around 5 tonnes of gold in the 1970s and 1980s. India’s production came mainly from KGF, which stopped operations in 2001.
“If you look at India now, our production has come down to 1.5 tonnes, while China stands at around 400 tonnes, Australia at 350 tonnes, and South Africa at around 250 tonnes. The main reasons for this were lack of exploration and bureaucratic hurdles,” Modali said.
He said the focus had long been on exploring iron ore, coal, zinc and copper, which were considered more critical for a growing economy. Although the sector was opened up to private exploration in the 1990s, bureaucratic hurdles continued to delay clearances.
“A substantial amount of gold can be produced in India, as the country has reserves of at least around 100 tonnes. Geomysore will be a huge confidence builder for new investors to come in and invest in gold projects,” Modali added.
Deccan also has gold mine projects in Kyrgyzstan and Finland. In addition, it has a critical minerals portfolio, with nickel reserves in Chhattisgarh, lithium in Mozambique and tungsten in Spain.
The tiny scale of domestic production stands out against India’s gold imports. In 2025, gold imports surged in value to about $59 billion, driven by strong demand and record prices. That is where the Geomysore management echoes a famous Rocky bhai line from KGF: “Idhu history alla, idhu future” — this is not history, this is the future.
