Deccan Gold to Start Critical Mineral Drilling in December
ECONOMY & POLICY

Deccan Gold to Start Critical Mineral Drilling in December

Deccan Gold Mines Limited (DGML) will begin drilling operations in December at its Balukona critical mineral block in Chhattisgarh, marking a significant step in India’s strategy to secure domestic sources of nickel, copper, platinum, and palladium, Managing Director Hanuma Prasad said in an interview with ANI.

“In Chhattisgarh, we have the Balukona block for nickel, copper, platinum, and palladium,” Prasad said. “Drilling will begin in December.” He added that the site has strong multi-commodity potential, with an expected annual output of around 10,000 tonnes of copper and 10,000 tonnes of nickel.

Describing the Balukona block as a multi-resource mine, Prasad noted that all the identified elements are classified as critical minerals essential for energy transition, electric vehicles, and defence technologies.

DGML, India’s only listed gold exploration company, also operates the Jonagiri Gold Project in Andhra Pradesh — the country’s first operational gold mine in 80 years. “Jonagiri is fully commissioned,” Prasad said. “It will produce about 450–500 kilogrammes of gold in the first year, reaching 750 kilogrammes at peak capacity.”

Beyond domestic operations, the company is expanding its global footprint in rare-earth and critical mineral assets. “We are conducting due diligence on rare-earth metal projects in one European country and another in southern Africa,” Prasad said, adding that the company expects clarity within a month.

DGML has three overseas projects — in Kyrgyzstan, Finland, and Mozambique. Its Altin Tor Gold Project in Kyrgyzstan, where DGML holds a 60 per cent stake, currently produces 350–400 kilogrammes of gold annually, with output expected to reach 700–750 kilogrammes within two to three years.

In Finland, DGML plans to begin operations next summer, establishing a 1,000-tonne processing facility that will produce about one tonne of gold per year for at least five years.

The company’s project in Mozambique targets the electric vehicle supply chain, with plans to produce 200 tonnes of lithium concentrate daily. A processing plant will be commissioned next year, and the concentrate will be transported to India for further processing. The investment in Mozambique is estimated at USD 30–40 million, while the Finland project will require about USD 40 million.

Prasad, who also serves on the National Mineral Exploration Trust (NMET) executive committee, said the National Critical Mineral Mission (NCMM) — launched in 2025 — is driving India’s push for mineral security. The mission aims to strengthen value chains, encourage domestic exploration, and reduce import dependence through international collaborations and R&D.

“Exploration is the only solution to develop mines in this country,” Prasad said, adding that the government’s efforts are beginning to yield results. However, he cautioned that auction premiums of 60–70 per cent may not be financially viable for private miners.

“India imports nearly Rs 700 billion worth of rare and critical minerals every year,” he noted. “Whatever we supply may seem small, but it’s the first step towards self-reliance.”

Deccan Gold Mines Limited (DGML) will begin drilling operations in December at its Balukona critical mineral block in Chhattisgarh, marking a significant step in India’s strategy to secure domestic sources of nickel, copper, platinum, and palladium, Managing Director Hanuma Prasad said in an interview with ANI. “In Chhattisgarh, we have the Balukona block for nickel, copper, platinum, and palladium,” Prasad said. “Drilling will begin in December.” He added that the site has strong multi-commodity potential, with an expected annual output of around 10,000 tonnes of copper and 10,000 tonnes of nickel. Describing the Balukona block as a multi-resource mine, Prasad noted that all the identified elements are classified as critical minerals essential for energy transition, electric vehicles, and defence technologies. DGML, India’s only listed gold exploration company, also operates the Jonagiri Gold Project in Andhra Pradesh — the country’s first operational gold mine in 80 years. “Jonagiri is fully commissioned,” Prasad said. “It will produce about 450–500 kilogrammes of gold in the first year, reaching 750 kilogrammes at peak capacity.” Beyond domestic operations, the company is expanding its global footprint in rare-earth and critical mineral assets. “We are conducting due diligence on rare-earth metal projects in one European country and another in southern Africa,” Prasad said, adding that the company expects clarity within a month. DGML has three overseas projects — in Kyrgyzstan, Finland, and Mozambique. Its Altin Tor Gold Project in Kyrgyzstan, where DGML holds a 60 per cent stake, currently produces 350–400 kilogrammes of gold annually, with output expected to reach 700–750 kilogrammes within two to three years. In Finland, DGML plans to begin operations next summer, establishing a 1,000-tonne processing facility that will produce about one tonne of gold per year for at least five years. The company’s project in Mozambique targets the electric vehicle supply chain, with plans to produce 200 tonnes of lithium concentrate daily. A processing plant will be commissioned next year, and the concentrate will be transported to India for further processing. The investment in Mozambique is estimated at USD 30–40 million, while the Finland project will require about USD 40 million. Prasad, who also serves on the National Mineral Exploration Trust (NMET) executive committee, said the National Critical Mineral Mission (NCMM) — launched in 2025 — is driving India’s push for mineral security. The mission aims to strengthen value chains, encourage domestic exploration, and reduce import dependence through international collaborations and R&D. “Exploration is the only solution to develop mines in this country,” Prasad said, adding that the government’s efforts are beginning to yield results. However, he cautioned that auction premiums of 60–70 per cent may not be financially viable for private miners. “India imports nearly Rs 700 billion worth of rare and critical minerals every year,” he noted. “Whatever we supply may seem small, but it’s the first step towards self-reliance.”

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