Kurnool: Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday inaugurated a ₹405-crore gold mining and processing project at Jonnagiri in Kurnool district, marking the commencement of commercial gold production in the state. The project is expected to strengthen Andhra Pradesh’s mining sector, boost industrial growth, generate employment, and contribute significantly to state revenues.
Developed by Geo Mysore Services India Private Limited in collaboration with Deccan Gold Mines Limited, the project is being promoted as the country’s largest private-sector gold mining venture. During the event, Chief Minister Naidu also laid the foundation stone for the second phase of development, signalling the state government’s commitment to expanding mining activities in the region.
According to official information, the government has allotted 1,500 acres for the project. Mining operations have begun on 600 acres under the first phase, while the remaining land will be brought under development in subsequent stages. The project is expected to create employment opportunities for around 700 people, providing a significant economic boost to the local community.
Project estimates indicate that gold production will reach approximately 400 kilograms in the first year of operations. From the second year onward, annual production is expected to increase to 900 kilograms, with long-term plans to scale up output to two tonnes per year.
The state government is also set to benefit financially through royalty payments. Under existing regulations, Andhra Pradesh will receive a royalty equivalent to four per cent of the value of gold produced from the mine. Based on current projections, the state could earn nearly ₹57 crore in royalty from the first year’s estimated production and around ₹144 crore annually once production reaches 900 kilograms.
Officials said the project opens a new chapter in Andhra Pradesh’s mining industry and is expected to place the state on India’s gold mining map, traditionally dominated by Karnataka’s famous Kolar Gold Fields. The initiative is also expected to attract further investments into the mining and mineral processing sectors, supporting broader industrial development across the state.
