Gold Production in India: Enhancing Domestic Output
India is actively seeking strategies to enhance domestic gold production, including focusing on extracting gold from mine tailings. This approach is being explored in light of current and expected increases in bullion prices.
Gold Price Trends
- International gold prices experienced a significant rise, with a 6.7% increase in early September, reaching approximately $3,750 per ounce.
- Earlier in August, there was a 4% increase attributed to geopolitical concerns and central bank purchases.
- Domestically, 24-carat gold prices soared past ₹1,14,000 per 10 gm from ₹95,000 per 10 gm in May.
Gold Import and Domestic Production
- India has been a major importer of gold, with annual imports ranging between 650-1,000 tonnes over the past decade.
- In 2024-25, India produced 1.62 tonnes of gold, valued at approximately Rs 1,255 crore.
- Karnataka leads in gold production, with additional output from Andhra Pradesh and Jharkhand.
Methods to Increase Gold Production
- The government is exploring extracting gold from tailings, the remnants after ore extraction, which contains traces of gold alongside other metals like zinc and copper.
- This method, though expensive, is becoming commercially viable with rising gold prices.
- Experts, such as Abhijit Kulkarni from EY-Parthenon India, highlight the need for mechanized mining to scale extraction efforts, moving away from labor-intensive methods.
