Andhra Pradesh strikes gold with Jonnagiri mine, eyes more projects

Andhra Pradesh is steadily emerging as a significant gold mining destination under Chief Minister N. Chandrababu Naidu’s Swarna Andhra 2047 vision, with commercial production commencing at the Jonnagiri Gold Mine in Kurnool district and several other gold-bearing blocks being readied for auction across the State.

The Jonnagiri project, operated by Geomysore Services India Pvt. Ltd. (GMSI), is the country’s only operational private-sector primary gold mine and the lone active gold mining lease in Andhra Pradesh. Spread across 597.82 hectares in Tuggali mandal, the mine began commercial operations in May 2026 after attracting investments of more than ₹405 crore. Mr. Naidu is expected to formally inaugurate the project shortly.

The mine currently provides employment to over 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 projected to rise to nearly one tonne a year in the coming years. With future expansion, annual output could increase to about two tonnes.

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

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

Principal Secretary (Mines) Mukesh Kumar Meena told The Hindu the government was focused on harnessing the State’s mineral resources through scientific exploration, transparent auctions and environmentally responsible mining practices. These efforts, he said, were aimed at attracting investment, generating employment and contributing to Andhra Pradesh’s long-term economic growth.