Jonnagiri Gold Mine Opens New Chapter in AP’s Industrial Growth

Andhra Pradesh is set to make history in its industrial and mining sector with the commencement of commercial gold production at the Jonnagiri Gold Mine in Kurnool district . Chief Minister N. Chandrababu Naidu will inaugurate the ₹405-crore gold mining and processing project on Wednesday, marking a significant milestone in the state's efforts to diversify its industrial base and unlock the potential of its mineral resources.

The project, developed jointly by Geomysore Services India Pvt. Ltd. and Deccan Gold Mines Ltd. , is among the most ambitious private-sector gold mining ventures in the country. Along with launching the first processing unit, the Chief Minister will also lay the foundation stone for a second unit as part of the project's expansion plans.

The inauguration is expected to place Andhra Pradesh firmly on India's gold mining map. For decades, the country's gold mining industry has been associated largely with the historic Kolar Gold Fields (KGF) in Karnataka. With the emergence of the Jonnagiri project , Andhra Pradesh is now poised to become an important contributor to domestic gold production.

The state government has allocated nearly 1,500 acres for the mining venture. In the first phase, mining operations and processing infrastructure have been established across approximately 600 acres , while the remaining land has been earmarked for future expansion aimed at increasing production capacity.

Project developers have set an ambitious roadmap for growth. The mine is expected to produce around 400 kilograms of gold in its first year of operation . Output is projected to rise to 900 kilograms annually from the second year , with long-term plans to scale production to nearly two tonnes of gold per year .

Beyond its industrial significance, the project is expected to deliver substantial economic benefits to the state. Under the royalty-sharing arrangement, the Andhra Pradesh government will receive 4 percent of the value of the gold produced . Based on current estimates, this could translate into nearly ₹57 crore in revenue during the first year and around ₹144 crore from the second year onwards , providing a new source of income for the state exchequer.

The project is also expected to create employment opportunities for the local population, with more than 700 direct and indirect jobs likely to be generated. Officials believe the mine could stimulate broader economic activity in the Rayalaseema region , attracting ancillary industries and infrastructure development.

According to the official schedule, Chandrababu Naidu will arrive at Jonnagiri at 11:45 a.m. and inaugurate the first gold processing unit at 12:20 p.m. He will subsequently lay the foundation stone for the project's second phase and address a public gathering. The Chief Minister is also scheduled to interact with TDP leaders and party workers from the Pattikonda Assembly constituency later in the day.

The launch of the Jonnagiri project is being viewed as a landmark moment for Andhra Pradesh's industrial ambitions, reinforcing the state's focus on mining, manufacturing and resource-based economic growth.