India’s First Private Gold Mine Since Independence Inaugurated in Andhra Pradesh’s Kurnool District
Andhra Pradesh Chief Minister N. Chandrababu Naidu has inaugurated India’s first private integrated greenfield gold mining project since Independence at Jonnagiri in Kurnool district, marking a landmark development for the nation’s mining industry. The project revives commercial-scale domestic gold production at a time when gold prices are witnessing record highs.
Until now, India’s gold mining operations were limited to the historic mines of Kolar and Hutti in Karnataka, both established during the colonial era. While the Hutti mine remains operational under a state-owned enterprise, mining activities at Kolar ceased years ago. The commissioning of the Jonnagiri project therefore represents the first new gold mining venture of its kind in independent India.
Developed by Geo Mysore Services India Pvt. Ltd. and Deccan Gold Mines, with backing from Lloyds Metals and Energy and the Thriveni Group, the project has attracted investments of over ₹405 crore. During the inauguration, Naidu also laid the foundation stone for the mine’s second expansion phase and flagged off vehicles carrying gold-bearing ore for processing. He further visited the on-site training facility where local women and youth are being trained to operate heavy mining machinery using advanced simulators.
Spread across nearly 598 hectares in the villages of Jonnagiri, Erragudi and Pagidirayi in Tuggali mandal, the project currently hosts certified gold resources of around 13.1 tonnes. Ongoing exploration indicates the possibility of much larger reserves within the surrounding mineralised belt. The mine is expected to operate for approximately 15 years, with annual gold production initially targeted at 400 kilograms, increasing to 900 kilograms in the next phase and eventually reaching two tonnes per year.
Speaking at a public gathering following the inauguration, Naidu highlighted the region’s rich historical legacy, noting that Jonnagiri was once known as Swarnagiri and served as a prominent centre of mineral wealth during the reigns of Ashoka and Krishnadevaraya.
The Chief Minister also shared the state’s long-term vision of raising annual gold production to 50 metric tonnes, a move aimed at reducing India’s heavy reliance on imports. India currently imports between 700 and 1,000 tonnes of gold annually, making it the country’s second-largest import commodity after crude oil.
As part of the inauguration ceremony, Geo Mysore Services and Deccan Gold Mines presented the Andhra Pradesh government with a gold-crafted map of the state made using gold produced from Jonnagiri. Naidu announced that the artefact would be displayed in the proposed museum at Amaravati. The mine’s first batch of gold was also formally handed over to jewellery manufacturers from Andhra Pradesh.