400 kg of gold production in the first four years!
Andhra Pradesh Gold Mine:Andhra PradeshChief Minister N. Chandrababu Naidu today (June 24, 2026) inaugurated a Rs 405 crore gold mining and processing project at Jonnagiri in Kurnool district. Along with thisIn Andhra PradeshNow, commercial scale gold production has officially started. The Chief Minister also laid the foundation stone of the second phase of this project. This ambitious project is being jointly developed by ‘Jio Mysore Services India Private Limited’ and ‘Deccan Gold Mines Limited’.
A new era for the mining sector
An official statement from the Andhra Pradesh government said, “This project marks a new chapter for Andhra Pradesh in the mining sector. It will accelerate industrial development in the state and create large-scale employment opportunities.” The government has sanctioned a total of 1,500 acres of land for this project, and mining work has begun on 600 acres of land in the first phase.
400 kg of gold production in the first year
According to the project estimates, about 400 kg of gold is expected to be produced in the first year. This production is expected to increase to 900 kg per year from the second year. According to the long-term planning, the target is to produce 2 tons of gold per year from this mine in the future.
Revenue of crores to the state government
The state government will also get a large amount of revenue from this project. The state government will get 4 percent royalty of the value of gold produced from the mine. As per the current estimates, about ₹57 crore royalty can be collected from the production of 400 kg of gold, while about ₹144 crore royalty can be collected from the production of 900 kg.
Employment opportunities for 700 people
This project will give a major boost to employment generation at the local level. According to the available information, this project is likely to provide direct and indirect employment to about 700 people. Notably, this project is being claimed to be the largest gold mining venture in the private sector in the country.
Gold reserves of more than 50 tons?
According to some media reports, the Jonnagiri area is estimated to contain over 50 tonnes of gold reserves, which could further increase the economic importance of the project in the future.
Where is gold produced in India?
Currently, the major gold production in India is at Hatti Gold Mines in Karnataka. Apart from this, there are also gold deposits and small and large mines in Andhra Pradesh, Jharkhand and some other states. However, with the Jonnagiri project, Andhra Pradesh is likely to emerge more prominently on the gold production map of the country.