New Delhi [India] September 19 (ANI): India's first private sector gold mine at Jonnagiri in Andhra Pradesh, developed by Geomysore Services and Deccan Gold Mines, is set to be commissioned soon.

Hanuma Prasad, Managing Director of Deccan Gold Mines, says it will be a historic moment for India's gold mining sector, as it will be India's first new gold mine in nearly eight decades.

'In last 80 years, no mine was opened. The last gold mine that was established in this country was in 1945, during the British era in Karnataka. After that, no new mine has been established in this country,' Prasad told ANI on the sidelines of Indian Mining Summit 2025, organised by CII, which focused on critical minerals and the Atmanirbhar Bharat initiative.

Prasad said, 'Ours will be the first one, where Deccan is a minority shareholder in Andhra Pradesh, and it will get commissioned very, very soon.' Once commissioned, it is a historic moment for the gold mining industry in the country, he said.

Calling the move historic, Prasad emphasised that the project could serve as a catalyst for future investments in India's gold mining sector, inspiring more entrepreneurs to enter the space.

However, he warned that gold mining is a capital-intensive and high-risk industry. 'A lot of exploration is required, and the capital involved is largely risk capital.'

Prices are driving everyone to enter this field, but they should be very clear that it is a tedious job and a lot of exploration is required, as well as a significant amount of risk capital, he said.

Despite high global prices, India's appetite for gold remains strong. 'Price doesn't matter for Indians. We keep buying gold,' said Prasad. He pointed out that cultural factors and economic performance have a significant influence on demand. 'If the monsoon is good, gold purchases go up. Even this year, in spite of the price increase, we may see imports cross 1,000 tonnes.'

India, which currently imports 99 per cent of its gold, produces only around 1.5 tonnes domestically from a single operating mine. Prasad argued that this reliance on imports doesn't make economic sense. 'Gold is not like oil--it's not consumed or used. It just stays locked as an asset at home, yet we're spending billions to import it,' he said.

He acknowledged that while the government has reduced import duties recently to ease supply, the real solution lies in policy reforms to boost domestic production. 'The government is serious about reviving the gold mining industry. Many blocks have been auctioned, but even with approvals, setting up a mine takes 6-7 years,' he said.

Looking ahead, Prasad expressed optimism that once Deccan's mine becomes operational, it will mark the beginning of a new chapter for Indian gold mining. 'We're entering production this year, and we expect revenue to start coming in from next year. This success can pave the way for a broader revival of the sector,' Prasad said. (ANI)