Andhra Pradesh set to lead India’s gold production with 50-tonne reserve

Sun June 21 2026

Massive reserve found: Authorities estimate 50 tonnes of gold in Jonnagiri, with only a third of the allotted mining area explored so far.

Private mining milestone: The Jonnagiri project is India’s first large-scale private gold mine since Independence, targeting up to 1,000 kg annual output.

Import dependence challenge: India imports over 800 tonnes of gold yearly; Andhra’s find could help cut this, though low ore grades make mining costly.

50-tonne gold reserve confirmed in Andhra Pradesh

Officials in Andhra Pradesh have confirmed an estimated 50 tonnes of gold reserves in Jonnagiri village, Kurnool district, with commercial mining already underway. Exploration on 500 of the 1,500 allotted acres has revealed 13 tonnes, and work on the remaining land is expected to raise the total to 50 tonnes. The site’s valuation is pegged between ₹7,500 crore and ₹9,000 crore at current prices. NDTV Profit + 4

Local and economic benefits of Jonnagiri project

· 90% of the mine's workforce is recruited directly from Kurnool district, providing stable local employment.

· The project is driving economic growth in Rayalaseema, historically known as 'Ratanala Seema'.

· Private sector involvement brings advanced technology and capital, improving mining efficiency and profitability.

· Jonnagiri contributes to India’s Aatmanirbhar Bharat initiative by adding over a tonne of gold annually to domestic output.

How Jonnagiri could reshape India’s gold industry

The Jonnagiri project, developed by Geomysore Services India Pvt Ltd with over ₹400 crore investment, is India’s first large-scale private gold mine since Independence. Spanning nearly 598 hectares, it targets peak output of 1,000 kg refined gold annually for 15 years, potentially easing India’s dependence on imports of over 800 tonnes a year. Industry leaders say its success could attract more investment into gold and critical minerals.

From Kolar’s closure to Jonnagiri’s rise

India’s domestic gold production has been minimal since the 2000 closure of Karnataka’s Kolar Gold Fields, with only Hutti Gold Mines producing about 1.5 tonnes annually. Jonnagiri marks a structural shift, introducing large-scale private sector participation through competitive bidding to meet the capital and expertise demands of modern mining. The project also brings local economic benefits, employing a majority of its workforce from Kurnool district.

What’s next for Andhra Pradesh’s gold ambitions?

Officials plan further exploration at Jonnagiri and four other sites—Ramagiri, Javvakula, Chigurukunta, and Bisnatam—to expand reserves. However, declining ore grades mean only about 1 gram of gold is recovered per tonne of rock, down from 3 grams historically, with operations uneconomical below 0.8 grams. Future scenarios range from Andhra becoming a sustained top producer if new finds are viable, to output plateauing if recovery rates fall or costs rise.

Source: https://www.msn.com/