AP CM Inaugurates Major Jonnagiri Gold Mining Project in Kurnool District
Andhra Pradesh Chief Minister N Chandrababu Naidu has officially inaugurated the Jonnagiri gold mining project in Kurnool. Valued at Rs 405 crore, the venture is expected to boost the state economy through significant royalty earnings and generate approximately 700 jobs as gold production scales up over time.
Highlights
- •Andhra Pradesh Chief Minister N Chandrababu Naidu launched the Rs 405-crore Jonnagiri gold mining project.
- •The project is expected to ramp up production to 900 kilograms of gold annually by the second year.
- •The mining venture aims to generate approximately 700 direct employment opportunities for local residents.
- •Andhra Pradesh expects significant revenue, projecting up to Rs 144 crore in annual royalty earnings.
In a significant boost to the regional industrial landscape, Andhra Pradesh Chief Minister N Chandrababu Naidu officially inaugurated the Jonnagiri gold mining project located in the Kurnool district on Wednesday. This milestone event marks the commencement of commercial gold extraction within the state, signaling a new chapter for the local economy and the broader mining sector in India.
The ambitious Jonnagiri gold mining project, valued at approximately Rs 405 crore, is a joint endeavor spearheaded by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited. During the inauguration ceremony, the Chief Minister also laid the foundation stone for the second phase of operations. This strategic development is anticipated to serve as a cornerstone for industrial expansion and job creation in the region.
Project Scope and Economic Impact
The state government has allocated a sprawling 1,500 acres of land for this mining venture. Currently, initial extraction activities have successfully commenced across a 600-acre section of the site. As the project matures, development will expand systematically into the remaining allotted land. The operational roadmap is robust, with expectations to produce 400 kilograms of gold during the inaugural year. This output is projected to climb to 900 kilograms annually by the second year, with long-term goals aiming to scale production toward an impressive two tonnes per annum.
Beyond the raw output, the Jonnagiri gold mining project is set to become a vital engine for local employment, with current estimates suggesting the creation of around 700 direct jobs. This influx of professional opportunities is expected to provide a substantial uplift to the surrounding communities in Kurnool. Furthermore, the state exchequer stands to benefit significantly through royalty revenue. The government is slated to receive a royalty equivalent to four per cent of the total value of the extracted gold.
Based on current financial projections, the state government anticipates earning approximately Rs 57 crore in royalties when production hits the 400-kilogram milestone. As operations scale to the targeted 900 kilograms per year, these annual royalty earnings are projected to rise to around Rs 144 crore. This endeavor is being positioned as India's most prominent private-sector gold mining initiative. By establishing this facility, Andhra Pradesh is effectively securing its place on the national gold production map, diversifying the industry beyond its traditional associations with the Kolar Gold Fields in Karnataka.
