CM Naidu to Inaugurate Major Gold Mining Project in Jonnagiri, Kurnool
Chief Minister N Chandrababu Naidu will inaugurate a major gold mining project in Jonnagiri, Kurnool, on Wednesday. Backed by a Rs 405 crore investment, the project aims to scale production to two tonnes annually, creating 700 jobs and boosting state revenue.
Highlights
- •CM Chandrababu Naidu to inaugurate a major gold mining project in Jonnagiri, Kurnool district.
- •The project represents a Rs 405 crore investment by Geo Mysore Services and Deccan Gold Mines.
- •Annual production is expected to reach 400kg initially, eventually scaling to two tonnes.
- •The venture is projected to create 700 jobs and provide substantial royalty income for the state.
Andhra Pradesh is set to strengthen its position in the national mineral landscape as Chief Minister N Chandrababu Naidu prepares to inaugurate a major gold mining project at Jonnagiri in the Tuggali Mandal of Kurnool district this Wednesday. This milestone marks a significant development for the region, which is now emerging as a key hub for private-sector gold exploration and production in India.
The ambitious gold mining project is a collaborative venture backed by a total investment of Rs 405 crore, spearheaded by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited. Following the successful completion of initial trial runs for both the mining and processing facilities, the facility is now ready for formal commercial operations. The Chief Minister will officially launch the first unit and simultaneously lay the foundation stone for the project's second phase of expansion.
Transforming Andhra Pradesh into a Gold Hub
Historically, India’s gold mining narrative has been synonymous with the legendary Kolar Gold Fields (KGF) in Karnataka. However, the establishment of this facility in Jonnagiri signals a paradigm shift, positioning the district as a vital player in the country's domestic production map. The state government has allotted 1,500 acres for the project, with mining activities currently underway on 600 acres during this initial phase.
As the project scales up, the infrastructure is designed to significantly boost local output. Initial projections estimate an annual production of 400 kilograms of gold, which is expected to rise to 900 kilograms by the second year. Once the processing capacity reaches its full potential through subsequent expansion phases, the facility aims to produce up to two tonnes of gold annually.
Economic Impact and Employment Generation
Beyond the technical production milestones, the gold mining project is set to serve as a catalyst for local economic growth. The initiative is expected to generate direct employment for approximately 700 individuals, providing a significant boost to the local labor market in Kurnool. Furthermore, the project serves as a lucrative revenue stream for the state government, which is entitled to a four per cent royalty on the value of the gold produced.
Based on production estimates, the state stands to earn approximately Rs 57 crore in royalties during the initial phase of 400 kilograms. As production scales to 900 kilograms, these earnings are projected to reach roughly Rs 144 crore. Following the inauguration and the foundation stone ceremony, N Chandrababu Naidu is scheduled to address a public gathering at Jonnagiri at 3:00 PM, concluding the visit with a meeting with local political representatives.
