Andhra Pradesh is poised to enter a new phase in its mining sector as commercial gold production is set to begin at the Jonnagiri Gold Project in Tuggali Mandal of Kurnool district. Marking a milestone nearly two decades in the making, Chief Minister N. Chandrababu Naidu will inaugurate the gold processing plant on Wednesday and lay the foundation stone for a second gold ore refining unit in the region.
The development signals Andhra Pradesh’s entry into the league of gold-producing states. Trial production at the Jonnagiri mine has already been completed successfully, and full-scale commercial operations are expected to commence shortly. Mining activities are also set to expand to an additional 1,200 acres around Jonnagiri to enhance production capacity.
Gold deposits in the region were first identified following reports of frequent diamond findings, prompting detailed surveys by the Geological Survey of India (GSI). Extensive studies conducted over nearly three decades confirmed commercially viable gold reserves in areas including Jonnagiri, Erragudi, and Pagidirayi.
In 2006, Geomysore Services India Private Limited secured mining rights over 1,477.24 acres in the region. Subsequent experimental mining validated the quality of the ore, leading to the establishment of a pilot plant. The company has since invested approximately Rs 320 crore in constructing a modern gold processing facility and has employed around 800 workers for mining and operational activities.
Officials noted that the project faced delays over the past five years due to administrative hurdles. However, with the formation of the current government, pending clearances and infrastructure requirements were expedited, allowing the project to reach the production stage.
Estimates suggest that the region holds more than 10 million tonnes of gold ore, with the East Block alone accounting for around 6.8 million tonnes. Gold-bearing ore has been identified at depths ranging from 180 metres to nearly 2 kilometres below the surface.
The company plans to mine approximately 400,000 tonnes of ore annually. Initial production is expected to begin at around one kilogram of gold per day, gradually increasing to 600 kilograms annually and eventually reaching a target of 1,500 kilograms per year.
Beyond Jonnagiri, the state is exploring further expansion of gold mining activities. Production is expected to commence soon in the Ramagiri region of Anantapur district, while additional deposits have been identified in Chittoor district.
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