India is exploring innovative ways to increase domestic gold production, including extracting the precious metal from mine tailings—the fine particles left after initial ore processing. The move comes as global and domestic gold prices surge, with 24-carat gold in India crossing ₹1,14,000 per 10 grams in September, up from ₹95,000 in May.
Traditionally, India relies heavily on imports, sourcing 650–1,000 tonnes of gold annually. Officials have indicated that tailings extraction, though costly, could become commercially viable due to high prices. Tailings often contain traces of gold and other metals like zinc and copper, offering potential for additional recovery.
Experts emphasize that scaling up gold extraction will require mechanization, moving away from labor-intensive methods. Modern tailings retreatment could significantly improve recoveries, said Abhijit Kulkarni, senior partner at EY-Parthenon India.
In 2024–25, India produced 1.62 tonnes of gold, valued at around ₹1,255 crore, with Karnataka leading production, followed by Andhra Pradesh and Jharkhand. The government’s push aims not only to increase output but also to reduce reliance on imports amid rising global prices.
