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Deccan Digs Deep — 1,000 sq km African Gold Rush Begins in Mozambique

Swarnadwip Nath Published Jul 30, 2025, 05:21 PM Updated Sep 18, 2026, 09:52 AM

In a bold move that signals its global ambitions, Deccan Gold Mines Ltd. (DGML) has secured 1,000 square kilometers of mineral-rich tenements in Mozambique, marking a major leap into Africa’s booming resource sector. The acquisition, made through its wholly-owned subsidiary Deccan Gold FZCO, positions DGML at the forefront of lithium, tantalum, and rare earth exploration in one of the continent’s most promising mining jurisdictions.

This strategic expansion comes at a time when global demand for critical minerals is surging, driven by the energy transition, electric vehicles, and digital infrastructure growth.

Key Highlights from the Mozambique Deal:

- DGML secures 1,000 sq km of mineral-rich tenements in Mozambique

- Tenements located in high-potential zones for lithium, tantalum, and rare earths

- Joint venture formed with Magnifica Group to operate under Deccan Gold Mozambique Lda

- Deccan Gold FZCO holds 51 percent stake, with option to increase to 70 percent

- Plans underway to establish a processing plant for refining key minerals

Strategic Significance of the Acquisition:

- The tenements are situated in Mozambique’s Cabo Delgado and Tete provinces, known for their rich pegmatite formations and untapped reserves of lithium and tantalum.

- With global lithium prices rebounding and supply chains tightening, DGML’s entry into Mozambique offers a hedge against domestic regulatory delays and positions it as a future supplier to battery and electronics industries.

- The partnership with Magnifica Group brings local expertise, regulatory access, and logistical support, ensuring smoother operations and faster project execution.

Operational Roadmap and Exploration Plans:

- Initial geological surveys and sampling will begin in Q3 FY26, with airborne geophysics scheduled for Q4

- Drilling campaigns to commence in early 2026, targeting high-grade lithium spodumene zones and tantalum-bearing pegmatites

- Environmental and social impact assessments are being fast-tracked to meet Mozambique’s mining code requirements

- A modular processing plant is planned near Pemba port, enabling export-ready concentrates by FY27

DGML aims to leverage its experience from the Jonnagiri gold project in India to fast-track feasibility studies and resource estimation in Mozambique.

Financial and Market Implications:

- The Mozambique expansion is expected to cost ₹2.8 billion over the next two years, funded through internal accruals and strategic investor placements

- DGML’s stock surged 6.2 percent on the BSE following the announcement, hitting ₹178.40 — its highest since August 2024

- Analysts view the move as a diversification masterstroke, reducing dependency on Indian regulatory timelines and expanding DGML’s asset base across geographies

Sectoral Context and Competitive Landscape:

Africa is emerging as a hotspot for critical minerals, with countries like Zimbabwe, Namibia, and Mozambique attracting global players. DGML’s early entry into Mozambique gives it a first-mover advantage, especially as Western and Asian firms scramble for lithium access.

However, competition from Chinese-backed firms and regional players will require DGML to maintain operational agility, community engagement, and technological edge.

Conclusion:

Deccan Gold Mines’ acquisition of 1,000 sq km of mineral-rich tenements in Mozambique marks a transformative chapter in its growth story. With a clear roadmap, strategic partnerships, and rising global demand for critical minerals, DGML is poised to become a key player in Africa’s resource renaissance.

As the company begins exploration and development, investors and industry watchers will be keenly tracking its progress — not just for the minerals it may uncover, but for the new frontier it’s helping India’s mining sector chart.

Sources: 360 Mozambique, Times Now News, Equity Right, Deccan Gold Mines Investor Updates

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