New Delhi: Deccan Gold Mines (DGM) expects to start drilling at its critical mineral projects in India and overseas this quarter.
The company is exploring a nickel (Ni), copper (Cu), and platinum group elements (PGEs) block in Chhattisgarh, Hanuma Prasad Modali, managing director, told ET. In Mozambique, DGM would focus on lithium, tantalum, and copper, while in Spain, it is advancing a tungsten project, he said.
"We are also planning small-scale processing facilities with provision for future expansion, with the objective of achieving this by mid-2027," said Modali.
Last November, DGM announced a target of producing "+0.5 tonnes gold within the next 12-18 months." India produces about one tonne of gold per year and imports nearly 700 tonnes.
On the current rally in the price of the yellow metal and the impact on DGM, Modali said mining and processing costs have remained relatively stable over the years, with only marginal inflationary increases. "Any sustained increase in gold prices results in a meaningful improvement in topline performance and overall project economics for producing assets," he said.
The price of 24-karat gold touched ₹1.62 lakh per 10 grams on Tuesday, nearly doubling from ₹82,790 per 10 grams on January 27, 2025.
Modali said India's mining policies need to better recognise and reward grassroots exploration. "Exploration-intensive companies that take early-stage geological risk should be given clearer and more assured pathways to mining rights," said Modali. Such an approach would encourage genuine exploration activity, improve resource discovery rates, and strengthen the long-term sustainability of the mining sector, he said.
On the sector's wishlist for the coming budget, he said import duty exemptions, fiscal incentives, and tax benefits for miners in the sector would help improve project viability and accelerate the development of indigenous mineral resources.
The company is exploring a nickel (Ni), copper (Cu), and platinum group elements (PGEs) block in Chhattisgarh, Hanuma Prasad Modali, managing director, told ET. In Mozambique, DGM would focus on lithium, tantalum, and copper, while in Spain, it is advancing a tungsten project, he said.
"We are also planning small-scale processing facilities with provision for future expansion, with the objective of achieving this by mid-2027," said Modali.
Last November, DGM announced a target of producing "+0.5 tonnes gold within the next 12-18 months." India produces about one tonne of gold per year and imports nearly 700 tonnes.
On the current rally in the price of the yellow metal and the impact on DGM, Modali said mining and processing costs have remained relatively stable over the years, with only marginal inflationary increases. "Any sustained increase in gold prices results in a meaningful improvement in topline performance and overall project economics for producing assets," he said.
The price of 24-karat gold touched ₹1.62 lakh per 10 grams on Tuesday, nearly doubling from ₹82,790 per 10 grams on January 27, 2025.
Modali said India's mining policies need to better recognise and reward grassroots exploration. "Exploration-intensive companies that take early-stage geological risk should be given clearer and more assured pathways to mining rights," said Modali. Such an approach would encourage genuine exploration activity, improve resource discovery rates, and strengthen the long-term sustainability of the mining sector, he said.
On the sector's wishlist for the coming budget, he said import duty exemptions, fiscal incentives, and tax benefits for miners in the sector would help improve project viability and accelerate the development of indigenous mineral resources.