India is on the verge of a significant milestone in its mining sector, as Andhra Pradesh prepares to roll out the country’s first large-scale privately developed gold mine. Located in the Kurnool district, the Jonnagiri project is expected to begin operations in early May, marking a potential turning point in India’s reliance on imported gold. For years, India has depended heavily on imports, bringing in more than 800 tonnes of gold annually, an expense that weighs on foreign exchange reserves.
Local production has remained modest, with Hutti Gold Mines contributing only around 1.5 tonnes each year. The shutdown of the Kolar Gold Fields in 2000 left a lasting void in large-scale mining, while state-run firms have largely focused on overseas ventures.
The Jonnagiri project, developed by Geomysore Services India Pvt Ltd, could begin to change that narrative by strengthening domestic output capabilities. Spread across nearly 598 hectares covering Jonnagiri, Erragudi, and Pagidirayi villages, the project has attracted investments exceeding Rs 400 crore. Andhra Pradesh chief minister Chandrababu Naidu is expected to formally dedicate the mine to the nation.
Mukesh Kumar Meena, principal secretary, mines and geology, Andhra Pradesh, described the development as transformative. "This is a landmark moment —not just for Andhra Pradesh, but also for India's broader (gold) mining ambitions."
The facility’s processing plant was set up in just 13 months, highlighting the pace and efficiency of the project. B Prabhakaran, founder and managing director of Thriveni Earthmovers, stressed its broader significance. "Jonnagiri reflects what India is capable of when vision, technology and execution come together. We are not just building a mine, but creating a model for responsible, efficient and globally competitive mining in the country."
Initial estimates indicate certified gold reserves of 13.1 tonnes, with exploration suggesting this could rise to 42.5 tonnes. At full capacity, the mine is projected to produce up to 1,000 kilograms of refined gold annually over the next 15 years.
Industry leaders believe this could attract further investment into India’s mining ecosystem. Dr Hanuma Prasad Modali, director of Geomysore and managing director of Deccan Gold, emphasised the broader implications. "Success of this project should encourage many investors to come into the gold and critical mineral sector, which is the need of the hour for India, both commercially and strategically." He added, "India should aim at producing at least 50 to 100 tonnes of gold per annum in the next decade."
Beyond Mining: Local Development And Future Outlook
The project also includes initiatives aimed at improving local infrastructure, including education, healthcare, sanitation, drinking water, and skill development. Government backing has played a key role in aligning the project with industrial priorities and securing approvals. While experts caution that the mine may not immediately cut down imports, it represents a structural shift toward utilising domestic resources more effectively.
Meanwhile, gold demand showed a temporary slowdown in early March due to seasonal trends, financial year-end pressures, and price fluctuations, according to the World Gold Council. Buyers held back during price spikes, although festival demand offered some support. Notably, exchanges of old jewellery accounted for 40–50 per cent of transactions, while interest in bars and coins remained steady.
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