Andhra Pradesh strikes gold with Jonnagiri mine, eyes other projects

Pieces of gold in the mining camp. Representative image | Photo credit: ERNESTO BENAIDES

Andhra Pradesh is steadily emerging as a major destination for gold mining under Chief Minister N. Chandrababu Naidu’s Swarna Andhra 2047 vision, with commercial production beginning at the Jonnagiri gold mine in Kurnool district and several other gold-bearing blocks being prepared for auction across the state.

Jonnagiri project operated by Geomysore Services India Pvt. Ltd. (GMSI), is the only operational private sector primary gold mine in the country and the only active gold lease in Andhra Pradesh. The mine, which is spread over 597.82 hectares in Tuggali mandal, started commercial operations in May 2026 after attracting investment of over ₹405 crore. Mr. Naidu is expected to officially launch the project soon.

The mine currently employs more than 700 people, more than 80% of whom are from Andhra Pradesh. Production is estimated at around 400 kg of gold in 2026-27 and is expected to increase to nearly one tonne per year in subsequent years. With future expansion, annual production could increase to about two tons.

Meanwhile, the state government is pushing ahead with exploration and auction plans for a number of potential gold-bearing blocks in Chittoor and Anantapuram districts. Among the most promising is the Chigurgunta-Bisanatham block in Chittoor district, located along the extension of the historic Kolar Gold Fields belt. Geological studies have shown reserves of more than 2.2 million tonnes of ore with an average gold grade of 5.64 grams per tonne.

Other prospects identified include the Boksampalli and Ramagiri blocks along with the six Javakula gold blocks located in the Ramagiri and Veligallu Greenstone Belts, which are expected to attract interest from mining companies once they are auctioned.

Principal Secretary (Mining) Mukesh Kumar Meena told The Hindu that the government was focused on exploiting the state’s mineral resources through scientific exploration, transparent auctions and environmentally responsible mining practices. The effort, he said, was aimed at attracting investment, creating jobs and contributing to the long-term economic growth of Andhra Pradesh.

Published – 22 Jun 2026 21:21 IST