India’s First Private Gold Mine Since Independence Set to Start in Andhra Pradesh today
New Delhi (Vivek Ojha ) : The Jonnagiri mine in Andhra Pradesh will become India’s first large-scale privately operated gold mine since Independence, with production expected to begin in mid of June. Andhra Pradesh is preparing to host India’s first large-scale privately operated gold mine since Independence, with the Jonnagiri project in Kurnool district expected to commence operations on 24th june.
Ahead of the inauguration, The state cabinet has decided to rename jonnagiri village as “Swarnagiri” . The project is expected to generate employment for around 700 people with almost 80 percent of them local residents. The State government will recieve a 4 percent royalty on the value of gold produced with estimated revenues of about 57 crores from 400 kg of gold output and 144 crore from 900 kg .
Spread across nearly 598 hectares covering Jonnagiri, Erragudi and Pagidirayi villages, the project has attracted investments exceeding ₹400 crore.
Andhra Pradesh Chief Minister N. Chandrababu Naidu is expected to formally dedicate the mine to the nation,India imports over 800 tonnes of gold annually; the project is seen as an early step toward strengthening domestic output and diversifying supply sources.
India currently imports more than 800 tonnes of gold annually, placing pressure on the country’s current account and foreign exchange reserves. Domestic production has remained limited, with Hutti Gold Mines producing roughly 1.5 tonnes per year.
The Jonnagiri mine has certified gold resources of 13.1 tonnes, with further exploration suggesting the potential to increase reserves to around 42.5 tonnes. At peak capacity, the mine is expected to produce up to 1,000 kg of refined gold annually over an estimated 15-year operational period.
