Strategic Investment Fuels Deccan Gold Mines’ Kyrgyzstan Gold Project

Strategic Investment Fuels Deccan Gold Mines’ Kyrgyzstan Gold Project

₹30 Crore Loan from Godawari Power & Ispat Empowers Deccan Gold Mines’ Overseas Expansion and Stake Acquisition Plans

Introduction
India’s mining industry is undergoing a significant transformation, with Deccan Gold Mines Limited—one of the country’s leading gold exploration companies—expanding its global presence. The company’s international ambitions have received a fresh impetus through a ₹30 crore loan from Godawari Power & Ispat Ltd, reflecting strong investor confidence in DGML’s long-term strategy and the strategic relevance of its gold project in Kyrgyzstan.

The Strategic Partnership: DGML and GPIL
Background
Deccan Gold Mines Limited has been at the forefront of gold exploration in India and abroad. Its partnership with Godawari Power & Ispat Ltd, a major player in the steel and power sector, has evolved over recent years, with GPIL emerging as a key financial backer for DGML’s ambitious projects.
The Latest Funding Round
On July 3, 2025, DGML finalized an agreement to receive an additional Rs 30 crore in debt funding from GPIL. This brings the total loan amount extended by GPIL to DGML to Rs 80 crore, reflecting a deepening financial relationship and shared commitment to the success of the Altyn Tor Gold Project.
• Loan Tenure: 36 months
• Interest Rate: 12% PA
• Security: DGML has pledged equity shares in its associate firm, Geomysore Services, valued at over ₹66 crore.

The Altyn Tor Gold Project: India’s Gateway to Central Asia
Project Overview
The Altyn Tor Gold Project, located in the Tien Shan district of Naryn Province, Kyrgyzstan, is a cornerstone of DGML’s international strategy. The project is operated by Avelum Partner LLC, a subsidiary of DGML, and is estimated to contain significant gold reserves, positioning it as a high-potential asset in Central Asia.
Recent Developments
• Expansion and Construction: Work is underway to expand the processing plant, with a focus on ramping up activities and completing construction to commence gold production in 2025.
• Resource Potential: The site is believed to hold approximately six tonnes of gold resources, with ongoing geological and mining work to further delineate reserves.
• Operational Readiness: DGML’s workforce in Kyrgyzstan is fully mobilized, and the company is on track to meet its production targets for the year.

Equity Acquisition and Growth Strategy
Strengthening the Portfolio
A portion of the new funding will be used for equity acquisition, specifically to increase DGML’s stake in Geomysore Services (India) Private Limited. This move is expected to consolidate DGML’s position in the Indian gold mining sector while supporting its overseas ambitions.
Broader Investment Commitments
In addition to the GPIL loan, DGML has recently secured other investment commitments, including a Rs 60 crore infusion from a consortium of investors for its key projects in India and Kyrgyzstan. These funds are earmarked for both the Jonnagiri Gold Project in India and the Altyn Tor Gold Project, highlighting DGML’s dual focus on domestic and international growth.

Market and Industry Impact
Investor Sentiment
The announcement of the latest funding round has generated positive buzz in financial markets and among investors. The strategic partnership between DGML and GPIL is seen as a model for collaboration between mining and industrial companies, leveraging financial strength and sector expertise.
Industry Implications
• Boost to Indian Mining: DGML’s success in securing international funding and executing cross-border projects sets a precedent for other Indian mining firms.
• Resource Security: The development of the Altyn Tor Gold Project is expected to enhance India’s access to gold resources, reducing reliance on imports and supporting the country’s economic goals.

Conclusion
The ₹30 crore debt facility extended by Godawari Power & Ispat Ltd represents a pivotal milestone for Deccan Gold Mines Limited. Armed with this solid financial support, DGML is set to fast-track the advancement of its Altyn Tor Gold Project in Kyrgyzstan while also reinforcing its equity position within the Indian market. This strategic move not only cements DGML’s position as a leader in gold exploration but also signals a new era of international expansion for Indian mining companies. As the project advances towards production, the partnership between DGML and GPIL stands as a testament to the power of collaboration and vision in the mining sector.

:

The image added is for representation purposes only