Chief Minister Chandrababu Naidu will inaugurate the Rs. 405 crore Jonnagiri Gold Mining Project in Kurnool district on June 24. The project is expected to produce up to two tonnes of gold annually and generate employment for around 700 people.
Amaravati: Andhra Pradesh is set to mark a significant milestone in the mining sector with Chief Minister N. Chandrababu Naidu scheduled to inaugurate the Jonnagiri Gold Mining Project at Jonnagiri village in Tuggali Mandal of Kurnool district on Wednesday.
The Chief Minister will also lay the foundation stone for the project's second unit as part of the expansion plans of the country's largest private-sector gold mining venture.
Developed jointly by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited with an investment of Rs.405 crore, the project has completed trial runs of its mining and processing facilities. Commercial gold production will officially commence following the inauguration.
The project is being developed over 1,500 acres allotted by the state government. Mining operations have begun on 600 acres in the first phase, with the remaining area slated for development in the second phase. Processing plants required for extraction and refining have already been established at the site.
According to project estimates, the mine is expected to produce around 400 kilograms of gold during its first year of operation. Annual production is projected to increase to 900 kilograms from the second year and eventually scale up to nearly two tonnes as production capacity expands.
The project is expected to create direct and indirect employment opportunities for approximately 700 people, providing a major boost to the local economy.
Officials said the state government will receive a 4 percent royalty on the value of gold produced. Based on current estimates, Andhra Pradesh could earn around Rs.57 crore in royalty from 400 kilograms of annual production and approximately Rs.144 crore when production reaches 900 kilograms.
The inauguration is also expected to position Andhra Pradesh on India's gold mining map, a sector historically associated with Karnataka's famous Kolar Gold Fields. Industry experts believe the Jonnagiri project could emerge as a major contributor to India's domestic gold production in the coming years.
Following the inauguration, the Chief Minister will address a public meeting and later interact with TDP leaders and party workers from the Pattikonda Assembly constituency.
