Andhra Pradesh is set to make history on Wednesday with the launch of India's first private gold mining project at Swarnagiri, formerly known as Jonnagiri, in Kurnool district. Chief Minister N. Chandrababu Naidu will inaugurate the commercial operations of the gold mine, marking a significant milestone for the country's mining sector.
Ahead of the inauguration, the Andhra Pradesh cabinet approved the renaming of Jonnagiri village as 'Swarnagiri', reflecting the area's growing importance as a gold mining hub.
The project, operated by Geomysore Services India Pvt Ltd (GMSI), is the country's only operational private primary gold mine since Independence. Developed with an investment of around Rs 405 crore, the mine spans nearly 598 hectares in Tuggali mandal of Kurnool district.
Employment and revenue boost
The Swarnagiri gold mining project is expected to generate employment for approximately 700 people, with nearly 80% of the workforce coming from local communities. The Andhra Pradesh government is also expected to benefit through royalties and other statutory payments linked to gold production.
Officials estimate that the state could earn around Rs 57 crore annually from a production level of 400 kg of gold and up to Rs 144 crore if output reaches 900 kg.
Production targets and expansion plans
Trial production at the mine began in May, and commercial production will formally commence following the inauguration. The mine is expected to produce around 400 kg of gold during 2026-27, with annual output projected to increase to nearly one tonne in the coming years.
Following the launch of the first unit, Chief Minister Naidu will also lay the foundation stone for a second processing unit as part of the project's expansion plans. The expansion could eventually raise annual gold production to nearly two tonnes.
The project will source around 0.021 TMC of water from the Handri Neeva Sujala Sravanthi scheme through an 18-kilometre pipeline. Necessary trial runs have already been completed ahead of the commencement of commercial operations.
Why the project is significant
Calling the project a landmark development for India's mining industry, Deccan Gold Mines Ltd Managing Director Modali Hanuma Prasad said the mine demonstrates the potential of private-sector participation in primary gold mining through advanced and sustainable mining practices.
He added that Andhra Pradesh possesses significant untapped gold reserves and that the Swarnagiri project could attract fresh investments, create jobs, and encourage scientific exploration in the region.
More gold mining opportunities in Andhra Pradesh
According to Principal Secretary (Mines and Geology) Mukesh Kumar Meena, the Chigurgunta-Bisanatham block has estimated ore resources of more than 2.2 million tonnes with an average gold grade of 5.64 grams per tonne. The block is currently being auctioned through the unified mining portal.
Several other prospective gold-bearing areas in Anantapur district, including Boksampalli, Ramagiri, and Javakula, are also under exploration. These sites are located within the Ramagiri and Veligallu greenstone belts, geological formations comparable to the famous gold-producing regions of Kolar and Hutti.
