Andhra Pradesh strikes big as Jonnagiri gold mine nears launch

The Jonnagiri project in Kurnool (Andhra Pradesh) is India’s first large-scale private gold mine since Independence and is set to begin commercial production in May. Spread over 598 hectares, it is a turning point in the mining sector of India. (All Images by- Mahesh G)

India imports more than 800 tones of gold every year, exerting pressure on the foreign exchange reserves. Domestic production is insignificant with Hutti Gold Mines producing only about 1.5 tonnes per year.

Backed by Geomysore Services, Thriveni Earthmovers, and Deccan Gold, the Rs 400 crore project represents a rare private entry into India’s gold mining industry and could open doors for future investments.

The mine is expected to produce up to 1,000 kg of gold annually for 15 years. Certified reserves stand at 13.1 tonnes, with potential rising to 42.5 tonnes after further exploration.

The Andhra Pradesh state government has assisted in acquiring clearances, aligning the project with goals of industrial growth. Officials call it a milestone moment for India’s mining aspirations.

Experts say the project may not immediately cut imports but signals a structural shift. It could help India move toward domestic gold production of 50–100 tonnes annually in the future.

The project uses open-pit mining, crushing, carbon-in-leach processing, and smelting to convert ore into doré bars—transforming raw rock into refined gold through advanced technology.