AP’s Chief Minister Mr N Chandrababu Naidu today inaugurated a coveted gold mining project at Jonnagiri in Tuggali Mandal of Kurnool district, Andhra Pradesh.

This project is of much significance as it is touted to be India’s first private sector gold mine.

The gold mining and processing project is being established with an investment of Rs 405 crore by GeoMysore Services India Private Limited and Deccan Gold Mines Limited.

Trial runs at the mine and processing facilities have already been completed and commercial production of gold has now been formally commenced with the inauguration by the Chief Minister.

It may be noted that India’s gold mining history was synonymous with Karnataka’s Kolar Gold Fields (KGF).

Now, Andhra Pradesh’s Jonnagiri in Kurnool district is poised to carve out its own place on the country’s gold map with the country’s largest private-sector gold mining project established at Jonnagiri in Kurnool district, said a release from the government of Andhra Pradesh.

About the Project

The government has allotted 1,500 acres for the Jonnagiri Gold Fields project, with mining activities initially commencing on 600 acres in the first phase.

Necessary processing plants have already been set up and the project will be expanded to the remaining area in the second phase.

The plant is expected to produce 400 kilograms of gold in its first year of operations, increasing to 900 kilograms from the following year and gradually scaling up to 2 tonnes of gold annually as processing capacity is expanded.

In addition, the project is expected to generate employment for around 700 people.

The State Government will receive 4% royalty on the value of gold produced. Based on current estimates, the government is expected to earn approximately Rs 57 crore in royalty from 400 kilograms of production and around Rs 144 crore from 900 kilograms of production.

The CM also laid the foundation stone for the project’s second unit as part of its expansion plans.