Welcome to this week’s edition of TOPICAL WEDNESDAY. This time, we unearth the long, uncertain journey of Deccan Gold Mines, India’s first listed gold explorer now eyeing a long-awaited breakthrough as mining reforms finally catch up with its ambitions.
India has always had a fascination with gold. From temples to households, the yellow metal isn’t just an investment, it’s an emotion. Yet, while India is one of the world’s largest consumers of gold, its own soil has hardly contributed to that glittering demand. That’s where Deccan Gold Mines Ltd. (DGML) entered the story.
Founded with the dream of turning India’s geological potential into a homegrown gold industry, DGML has spent over two decades chasing that vision. It has explored, applied for licences, and announced promising discoveries, but each time, the excitement faded before the gold ever glimmered. Legal hurdles, policy paralysis, and endless delays turned its journey into one of hope and heartbreak.
In many ways, DGML became the mining world’s version of The Boy Who Cried Wolf. Each announcement of “production soon” drew less belief than the last. And yet, 2025 could be the year when this story takes a new turn. India’s mining laws are finally changing in DGML’s favour. The reforms now underway could either end the company’s long wait—or make its fable even longer.
About Deccan Gold Mines and Its Journey
Since the closure of the iconic Kolar Gold Fields (KGF) in 2001, which had produced over 800 tonnes of gold during its lifetime, India’s domestic gold production has plummeted. The country now consumes 600–800 tonnes of gold annually but produces barely 1.5 tonnes, almost entirely from the Hutti Gold Mines in Karnataka. Seeing this gap, Deccan Gold Mines Ltd. (DGML) was founded in 2003 to revive India’s gold-mining legacy and reduce dependence on imports. As India’s first listed gold exploration and development company, DGML set out to unlock the country’s untapped mineral wealth through projects across Karnataka, Andhra Pradesh, and Chhattisgarh. Yet, despite its early start and ambitious portfolio, the company has spent over two decades grappling with unclear laws, slow approvals, and endless litigation, its journey marked more by perseverance than production.
Below is a brief overview of its journey so far and how it has evolved over time. This is a snapshot from one of our reports for our bespoke research client.
(Source: Bastion Research)
The company’s key setbacks stemmed from restrictive rules that made it nearly impossible for private players to transition from exploration to actual mining. The Ganajur gold project, for example, faced rejection and delays due to old regulatory loopholes. This left DGML, and many others like it, with promising discoveries that could never move forward.
However, the mining reforms in 2023 and 2025 have changed the game. These new policies directly address the bottlenecks that kept DGML stuck in limbo for years. They simplify the transition from exploration to mining, open larger areas for private exploration, and ensure explorers can earn from their discoveries even if they don’t develop the mines themselves. For a company like DGML, this could finally turn its two-decade dream into a working reality.
A New Chapter: From Two Projects to a Global Portfolio
For nearly two decades, Deccan Gold Mines Ltd. (DGML) had little to show beyond two active Indian projects , Ganajur and Hutti. Legal hurdles and policy bottlenecks left its vast exploration potential locked away. But the arrival of Dr. Hanuma Prasad Modali marked a turning point.
Since taking charge as Managing Director, Dr. Prasad has reshaped DGML’s portfolio from a small domestic explorer into a multi-asset, multi-country operation. Under his leadership, the company has expanded into Kyrgyzstan, Tanzania, and Finland, while securing a nickel-copper-PGE block in Chhattisgarh and increasing its stake in Geomysore’s Jonnagiri project , its first step toward actual production.
The transformation reflects a clear strategic shift: from waiting on regulatory luck to actively building a diversified, revenue-ready mining pipeline. For DGML, this evolution could finally mean turning potential into performance.
(Source: Bastion Research)
The Policy Spark: MMDR 2025
In August 2025, Parliament passed the MMDR Amendment Bill, a major reform that continues India’s effort to modernize its outdated mining laws. To understand its importance, we first need to look back at where things stood before the recent reforms.
Under the old rules, mining leases were controlled by a system that heavily favored state-run or captive miners. Private exploration companies could identify promising mineral deposits but rarely benefited from them. The law required that once exploration was complete, the area would be re-auctioned often leaving the discoverer with nothing to show for their efforts. This discouraged private investment in exploration and kept India reliant on imports despite its geological potential. On top of that, restrictive rules capped the sale of minerals from captive mines to only 50% of production, and old mine dumps could not be commercially reused, leaving valuable minerals untapped.
The MMDR Amendment Act of 2023 broke this deadlock by introducing the Exploration Licence (EL) and Composite Licence (CL) systems. These gave explorers the right to explore large areas up to 1,000 sq km and share in future mining revenue if their discoveries were later auctioned. The 2023 law also brought in deep-seated and critical minerals such as gold, copper, nickel, lithium, and PGEs under a more liberal regime, signaling India’s intent to attract private and global players into its mineral hunt.
The 2025 amendment took this reform further. It removed the 50% sales restriction for captive miners, allowing them to sell their entire production freely in the market. It also opened the door to monetizing old mine waste and dumps, enabling companies to recover previously inaccessible resources. The amendment expanded the scope of the National Mineral Exploration Trust (NMET), giving it more funds and authority to finance private exploration, technology upgrades, and research. These measures collectively aim to create a more open, investor-friendly mining ecosystem where efficiency and competition thrive.
For companies like Deccan Gold Mines Ltd., these reforms are more than policy fine-tuning they’re a lifeline. The simplified licensing structure and revenue-sharing model finally give explorers a direct path from discovery to mining. The ability to sell freely, tap old waste, and receive NMET-backed exploration funding means DGML’s projects could move from paperwork to production faster than ever before. In short, the MMDR 2023 and 2025 reforms have turned India’s mining story from one of missed opportunities to one of renewed potential.
Why Deccan’s Promises Once Fell Flat
Before 2023, DGML’s journey was more heartbreak than harvest. The company raised hopes with announcements, but legal constraints and policy pitfalls kept it from ever really delivering.
- Section 10A(2)(b) limbo. This clause left many legacy mining projects like DGML’s Ganajur and North Hutti blocks trapped in prolonged legal uncertainty. Despite years of groundwork, exploration, and investment by DGML, the mining lease for Ganajur was eventually allotted to a state-run entity, echoing what had happened in the Indocil case. In Indocil’s situation, the company had faced a similar setback but successfully appealed, with the Karnataka High Court ruling in its favor in May 2022. That judgment, now under appeal in the Supreme Court, serves as a hopeful precedent for DGML, which has since intervened in the case. If the Supreme Court upholds the earlier ruling, DGML could finally regain rights to these gold-rich belts and resume long-stalled development. The management estimates potential output of up to 5 tonnes of gold annually, translating to nearly Rs 800 Cr in revenue , a turnaround that could redefine the company’s future after decades of waiting.
- Auction system without runway. After 2015, the government pushed mining leases into auctions to bring transparency. But explorers like DGML often lost out not because they lacked potential, but because auctioned blocks were small, approvals were slow, and the economics didn’t support sustained development. DGML, despite its early positioning, had no clear path to convert exploration into production.
- Flickers of stock optimism, then fade. Over the years, DGML’s share price would often respond to hopeful news: project clearances, regulatory announcements, or press statements. But the rally rarely stuck. The market learned to see these as momentary blips rather than durable value creation.
- Even reforms weren’t enough, for DGML. When the 2023 MMDR law established the Exploration Licence (EL) regime and introduced Composite Licences (CL), many in the industry cheered. But DGML still struggled to translate that into leasing wins or production starts its legacy legal battles and capital constraints remained drag anchors.
In short: the industry narrative was shifting, but DGML’s internal storms hadn’t yet cleared. Shareholders remained hungry for a pattern break not just another promise.
2025: Signs That the Wolf Might Be Real
After years of announcements that led nowhere, 2025 finally feels different. The difference this time isn’t in the promises, it’s in the proof. India’s mining sector is beginning to show visible traction, and DGML’s story is once again tied to that momentum.
- EL auctions are finally live. In March 2025, the first set of Exploration Licence (EL) auctions went public. For the first time, companies could actually bid for large exploration areas instead of waiting for slow bureaucratic approvals. This marked the moment when the reform turned from a headline to a functioning marketplace.
- Heavyweights entering the ring. The entry of Singareni Collieries (SCCL), a state-run mining giant into gold and copper exploration in Karnataka was a signal to the market. When PSUs start exploring gold, investors take notice. This participation legitimizes gold exploration as a serious business rather than a speculative niche.
- States getting proactive. States like Rajasthan re-auctioned key gold blocks, such as Kankriya Gara, in October 2025, showing a renewed interest in transparent and competitive mining. This new approach builds confidence that India’s mining map is opening up to more private players.
- Institutional support taking shape. The National Critical Minerals Mission (NCMM), sanctioned in January 2025, is now operational with ₹34,300 crore of funding over seven years. It aims to support research, exploration, and technology partnerships, making it easier for smaller companies like DGML to secure both funding and expertise.
Why This Time Could Be Different
For the first time in years, there’s genuine reason to believe that DGML’s long wait might finally lead somewhere. The difference now lies not just in better policy but in a stronger environment, better economics, and more visible results.
1. Stronger incentives for success. Earlier, explorers were stuck in a cycle of discovery without reward, finding deposits that others would later mine. The new Exploration and Composite Licence structure finally gives them a clear financial stake. DGML can now benefit from its own groundwork, earning a share of the value even if a larger player takes over operations. It’s a fairer, smarter system that motivates exploration rather than discouraging it.
2. Real funding and institutional support. The presence of the National Critical Minerals Mission (NCMM) and the upgraded National Mineral Exploration Trust (NMET) is a game changer. These aren’t just policy buzzwords, they represent real budgets, grants, and research backing that smaller companies never had access to. For DGML, this means a better chance of financing its exploration and speeding up progress without relying entirely on dilutive fundraising or debt.
3. On-ground momentum is finally visible. For years, DGML’s news flow revolved around court cases and policy updates. 2025 brings something more tangible, environmental and operational clearances for Jonnagiri, a potential nickel-copper-PGE find in Chhattisgarh, and a nearly ready-to-commission project in Kyrgyzstan. For once, the headlines are about assets moving toward production, not just permissions.
If these efforts translate into sustained output or proven reserves, DGML could finally escape its pattern of near-misses. Yet what makes this phase even more crucial is that the market has grown impatient. Investors no longer react to every announcement, they wait for results. And that’s healthy. It means the company must now deliver real gold, not golden promises.
The Flip Side: What Could Still Go Wrong
Even as optimism grows, it’s important for investors to stay realistic. Policy reforms have opened the doors, but walking through them requires execution and that’s where the real test lies. Gold mining is a capital-heavy, time-consuming business. Permits, licences, and approvals don’t dig the ore—people, funding, and strong project management do.
Execution risk remains front and centre. DGML has the vision, but not yet the production muscle. Turning exploration into extraction will demand serious investment and operational partnerships. Without that, the company risks being left behind while larger miners move faster.
Competition is intensifying. State-owned giants such as SCCL and NMDC are now entering gold and critical mineral exploration. Their financial muscle and government backing could easily outbid smaller companies like DGML in upcoming auctions, crowding them out of the most promising blocks.
Regulatory and social hurdles persist. While reforms have simplified processes, ground-level implementation can still get messy. Environmental clearances, local protests, and bureaucratic lag can derail timelines. DGML’s Ganajur project, tangled in legal proceedings for years, is a stark reminder that one court order can freeze momentum overnight.
Investor patience is thinning. The stock tends to react sharply to good news but quickly loses steam when progress stalls. Markets now want performance, not promises and DGML must show tangible output before it can rebuild lasting credibility.
In short, 2025 offers genuine opportunity, but not certainty. The path is clearer, the environment better but the execution must now match the ambition.
What to Watch
- Bhalukona drilling results – to confirm the nickel-copper-PGE discovery.
- DGML’s participation in upcoming EL/CL auctions – proof of its intent to stay competitive.
- First gold production from Jonnagiri or Altyn Tor – evidence that this time, DGML’s wolf isn’t imaginary.
- Ganajur’s court verdict – a domestic swing factor that could change the company’s valuation overnight.
Closing thoughts
After so many false alarms, skepticism toward Deccan Gold is justified. But the landscape around it is changing faster than ever. The legal bottlenecks that haunted it for decades are loosening, the government is putting real money behind exploration, and DGML finally has projects nearing the finish line.
This could still turn out to be another “almost” moment. Or, for the first time in two decades, it could be the start of something real, a wolf that finally howls.
We’d also love to hear your thoughts and feedback on X. Connect with us there at @bastionresearch.
Happy Investing!!!
Disclaimer: This newsletter is for educational purposes only and is not intended to provide any kind of investment advice. Please conduct your own research and consult your financial advisor before making any investment decisions based on the information shared in this newsletter.
😂Meme of the Week🤣
Follow us
If you are a diligent investor, you would not want to miss checking out our research platform, where we share insightful research on companies regularly. Gain access to our sample research by clicking on the button below.
