Andhra CM Chandrababu Naidu launches Rs 405-crore gold mining project in Kurnool
Andhra Pradesh Chief Minister N Chandrababu Naidu inaugurated a Rs 405-crore gold mining and processing project at Jonnagiri in Kurnool district. The project marks the start of commercial gold production in the state and is expected to generate jobs and royalty revenue
Kurnool (Andhra Pradesh): Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday inaugurated a Rs 405-crore gold mining and processing project at Jonnagiri in Kurnool district, marking the beginning of commercial gold production in the state.
The chief minister also laid the foundation stone for the second phase of the project, which is being developed by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited.
“This project opens a new chapter for Andhra Pradesh in the mining sector and is expected to contribute significantly to industrial growth and employment generation,” an official release said.
The government allotted 1,500 acres for the project, of which mining activities have commenced on 600 acres in the first phase. Expansion to the remaining area is planned in subsequent stages.
According to project estimates, gold output is expected to reach 400 kilograms during the first year of operations and increase to 900 kilograms annually from the second year, with plans to eventually scale up production to two tonnes a year.
The project is expected to create employment opportunities for around 700 people.
The state government will receive royalty revenue equivalent to four per cent of the value of gold produced from the mine.
Based on current projections, Andhra Pradesh could earn nearly Rs 57 crore in royalty from the production of 400 kilograms of gold and about Rs 144 crore once annual output reaches 900 kilograms.
The project is being touted as the country’s largest private-sector gold mining venture and is expected to place Andhra Pradesh on India’s gold mining map, which has traditionally been associated with Karnataka’s Kolar Gold Fields.
