Lloyds Enterprises Limited (LEL) has announced a landmark development in India’s mining sector — the commencement of pre-commercial production trials (PCOD) at the Jonnagiri Process Plant operated by its investee company, Geomysore Services India Pvt. Ltd. (GMSI). This milestone marks a new chapter in India’s journey toward becoming self-reliant in gold production, establishing Jonnagiri as the first privately-owned operational gold mine in independent India.

The announcement was made on 10th October 2025, and the company released a detailed statement highlighting the project’s progress, investment details, and strategic implications for its stakeholders.

A milestone for India’s gold mining industry

The Jonnagiri Gold Project, located in Andhra Pradesh, represents one of India’s most significant steps in reviving its domestic gold mining capabilities. For decades, India has relied heavily on imports to meet its gold demand — one of the largest in the world. With this development, the country is witnessing the re-emergence of indigenous gold production under the private sector.

According to the release, Geomysore Services India Pvt. Ltd. (GMSI) has successfully moved into the Pre-Commercial Operation Date (PCOD) phase, following years of development, exploration, and regulatory clearances.

The project is the culmination of over 12 years of persistent effort under the leadership of Mr. B. Prabhakaran, who has overseen its transformation from exploration to an operational stage.

GMSI has received all critical regulatory approvals, including Environmental Clearance valid until 2043, ensuring long-term operational stability and compliance.

Lloyds Enterprises’ strategic stake and financial involvement

Lloyds Enterprises Limited (LEL) holds an economic interest of 31.58% in GMSI through its 50% investment in Prakar Estate and Promoters LLP. This strategic shareholding allows Lloyds to participate in the substantial value creation expected from India’s emerging gold mining industry.

The total investment in the Jonnagiri project so far stands at ₹405 crore, covering exploration, mine development, plant construction, and related infrastructure.

This development marks the transition of the project from a development stage to the pre-commercial production phase, with both ore extraction and processing plant trials actively underway.

The company anticipates the commencement of full commercial production by November 2025.

Production capacity and future outlook

Upon full-scale commissioning, the Jonnagiri Gold Mine is expected to produce up to 900 kilograms of refined gold per year by FY2028, supported by a mine life of 15 years.

This production capability places it among the most significant domestic gold mining ventures in India’s modern history. The project’s robust resource base, advanced processing infrastructure, and regulatory compliance make it a benchmark initiative for India’s private mining sector.

In the coming years, the project’s focus will be on optimizing extraction efficiency, improving plant throughput, and enhancing metallurgical recovery rates. These improvements are expected to contribute significantly to Lloyds Enterprises’ consolidated earnings and asset value.

Gold’s resurgence in global and Indian markets

Over the past few years, gold has reasserted itself as a top-performing asset class, particularly amid global economic volatility and inflationary pressures.

According to the World Gold Council’s mid-year 2025 report, gold remains a preferred investment option for central banks, institutional investors, and retail savers, supported by consistent buying patterns and its role as a safe-haven asset.

In India, gold has delivered a Compound Annual Growth Rate (CAGR) of approximately 24.4% over the past three years. The sustained rally underscores the metal’s enduring appeal as a hedge against global uncertainty and currency depreciation.

Within this favorable macroeconomic backdrop, the timing of Jonnagiri’s production trials aligns strategically with the market’s upward trajectory. Lloyds Enterprises, therefore, stands positioned to benefit from both operational progress and rising gold prices.

Strategic significance for Lloyds Enterprises shareholders

For Lloyds Enterprises and its shareholders, the Jonnagiri project represents a transformative investment opportunity. Through its 31.58% stake in Geomysore Services India Pvt. Ltd., Lloyds gains exposure to one of India’s most promising natural resource ventures.

The commencement of pre-commercial production trials reflects not only the maturity of the project but also its potential to generate sustainable long-term value.

In its official statement, Lloyds Enterprises described the development as a “pathbreaking milestone” that will significantly enhance visibility and value for shareholders.

The company’s management believes that as commercial operations commence in November 2025, Lloyds’ participation in India’s gold value chain will strengthen its profile within the critical minerals and mining sector.

Environmental and regulatory sustainability

GMSI’s Jonnagiri Gold Project stands out for its strong environmental governance and compliance record. The project has received Environmental Clearance valid until 2043, ensuring long-term operational continuity.

Environmental sustainability is embedded in the project’s framework through controlled waste management, responsible water usage, and strict adherence to emission norms.

Additionally, the project has established community development initiatives around employment, education, and infrastructure, reinforcing its commitment to inclusive regional growth in Andhra Pradesh.

Economic and employment impact

The Jonnagiri project is expected to generate significant economic and employment benefits for the local region.

The pre-commercial and commercial phases together are likely to create hundreds of direct and indirect employment opportunities, including technical, operational, and administrative roles.

Additionally, ancillary industries such as transportation, logistics, fabrication, and equipment maintenance are expected to benefit from the mine’s operations.

With long-term production goals and an anticipated mine life of 15 years, the Jonnagiri operation is set to contribute to regional economic activity and India’s broader mineral self-sufficiency.

Lloyds Enterprises’ diversification strategy

Lloyds Enterprises Limited, part of the Lloyds Group, has a history of strategic diversification into sectors with high long-term potential. Originally established in the metal and engineering segment, the company has gradually diversified into renewable energy, critical minerals, and advanced materials.

Its investment in Geomysore Services India Pvt. Ltd. reflects this forward-looking approach — combining industrial expertise with emerging opportunities in India’s resource sector.

With India moving toward Atmanirbhar Bharat (self-reliant India) in natural resources, Lloyds’ entry into gold mining through a strategic partnership is both timely and visionary.

Gold as a key strategic resource for India

India’s dependency on gold imports has historically strained its current account balance. Domestic production initiatives like Jonnagiri can help reduce this dependency and strengthen the country’s resource base.

By fostering private participation in mining, the government is enabling new investment inflows, technology transfer, and job creation.

Lloyds Enterprises’ partnership with Geomysore demonstrates how public-private collaboration can drive India’s long-term energy and resource independence goals.

Forward-looking statements and cautionary note

The company’s press release included a safe harbour statement, noting that the information contains forward-looking statements based on current assumptions and expectations of management.

It cautioned investors that actual results may vary due to external market conditions, operational challenges, or regulatory changes, and the company assumes no obligation to update such statements.

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