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India’s first private gold mine set to begin in Andhra Pradesh

India is poised to strengthen its domestic gold output with the upcoming launch of the Jonnagiri gold project in Andhra Pradesh’s Kurnool district. The project is being seen as a significant milestone, marking the country’s first large-scale private gold mining operation since Independence.

Developed by Geomysore Services India Pvt Ltd with backing from Thriveni Earthmovers & Infra and Deccan Gold Mines Ltd., the project has already attracted investments exceeding ₹400 crore. The mine spans nearly 600 hectares across multiple villages in the region and is expected to be formally dedicated to the nation soon.

India currently relies heavily on gold imports, bringing in over 800 tonnes annually. Domestic production has remained limited, with Hutti Gold Mines being the only major operational producer. The closure of the historic Kolar Gold Fields in 2000 further reduced large-scale mining capacity, increasing dependence on global markets.

Production Capacity and Strategic Importance

The Jonnagiri facility is now in the final stages of pre-commercial operations, with its processing plant completed in a relatively short timeframe. Initial certified gold resources are estimated at over 13 tonnes, with exploration suggesting the potential for significantly higher reserves.

At peak capacity, the mine is expected to produce around 1,000 kilograms of refined gold annually over a projected lifespan of 15 years. Industry experts believe the project could play a key role in reducing import dependence while also encouraging private sector participation in mineral exploration.

The mining process at Jonnagiri involves open-pit extraction followed by advanced processing techniques. Gold-bearing ore is crushed and treated using methods such as gravity separation and carbon-in-leach systems, enabling efficient recovery of the metal. The final output is produced in the form of doré bars, which are then refined further.

Beyond production, the project aligns with India’s broader push for self-reliance in critical sectors. By boosting domestic output and attracting investment, the Jonnagiri gold mine is expected to contribute to economic growth while easing pressure on foreign exchange reserves.

As India seeks to build a more resilient resource base, projects like Jonnagiri highlight the growing role of private players in transforming the country’s mining landscape.