India’s First Private Gold Mine Begins Operations in Andhra Pradesh
The project is expected to boost industrial activity, create local employment opportunities, and strengthen Andhra Pradesh's position in India's mineral sector.
Kurnool: Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday inaugurated India’s first privately operated gold mining and processing project at Jonnagiri in Kurnool district. Developed at an investment of around ₹405 crore, the project is expected to produce nearly 900 kilograms of gold annually, marking a significant milestone for the country’s mining sector.
The state government is expected to earn an estimated ₹57 crore annually during the initial phase of operations through royalties and related revenues. Once the mine reaches its full production capacity of around 900 kilograms per year, the annual revenue is projected to rise to approximately ₹144 crore.
The project is expected to boost industrial activity, create local employment opportunities, and strengthen Andhra Pradesh’s position in India’s mineral sector. It also reflects the growing participation of private companies in mineral exploration and production.
Interestingly, ahead of the inauguration, Jonnagiri was officially renamed Swarnagiri, meaning “Golden Hill,” highlighting the region’s association with gold mining and adding symbolic importance to the launch.
Despite this development, India’s annual gold demand remains far higher, ranging between 700 and 900 tonnes, indicating that the new mine will contribute only a small share of the country’s overall requirement.
