Chandrababu Naidu inaugurates Rs 405-crore gold mining project in Kurnool

Andhra Pradesh Chief Minister N. Chandrababu Naidu inaugurated a Rs 405-crore gold mining project at Jonnagiri in Kurnool district, marking the start of commercial gold production. The project is expected to boost employment, regional development, and state mineral output

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.

He said the project marks a “golden chapter” in Andhra Pradesh’s journey towards achieving his vision of “Swarna Andhra” (golden Andhra) by 2047.

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Addressing a public meeting after inaugurating the Jonnagiri Gold Mining Project and laying the foundation stone for its expansion unit, the Chief Minister said the country’s largest private-sector gold mining venture would accelerate the development of the Rayalaseema region and generate employment opportunities for local youth.

“Today marks the beginning of a golden chapter in the state’s history. Rayalaseema, the land of gems, has become the centre of that golden chapter,” Naidu said.

The government has 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.

Congratulating Geo Mysore Services and Triveni Earthmovers for developing the project, the CM said Jonnagiri has a rich historical legacy and was earlier known as Suvarnagiri.

He noted that ancient Suvarnagiri was one of the four capitals of Emperor Ashoka and said inscriptions found at nearby Erragudi reflect the grandeur and prominence of the region in ancient times.

Naidu said the area was known for deposits of gold and precious stones centuries ago and recalled that Rayalaseema, which literally translates to “land of gems”, was renowned for its gemstone trade during the reign of Sri Krishnadevaraya.

He also noted that Andhra Pradesh was associated with the world-famous Kohinoor diamond and said the state has a long-standing connection with mineral wealth.

The Chief Minister observed that Rayalaseema had faced the threat of desertification over the years, but irrigation projects undertaken by successive governments had revived the region.

He expressed confidence that the gold mining project would further restore the region’s former glory.

He proposed renaming Jonnagiri as Suvarnagiri and announced that the village would be adopted and developed as a “Suvarnagiri Model Village”.

“Until yesterday, this place was known as Jonnagiri. From now on, let us call it Suvarnagiri,” he said, expressing hope that the gold mine would improve the livelihoods of local residents.

Referring to Prime Minister Narendra Modi’s goal of making India a developed nation by 2047, Naidu said his own vision was to build a prosperous “Swarna Andhra” and transform Rayalaseema into “Ratnala Seema”.

He said India currently imports around 800 tonnes of gold annually, making it one of the country’s largest imports after crude oil. Increased domestic production would help conserve foreign exchange reserves, he added.

Naidu said the mine is expected to begin production with around 400 kilograms of gold in the first year and eventually increase output substantially in the coming years.

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 CM said the project would create large-scale employment opportunities and act as a growth engine for the region.

He also announced plans to establish a jewellery park near the mining project so that gold extracted locally can be processed and converted into jewellery within the region instead of being transported elsewhere.

Describing Andhra Pradesh as both “Annapurna” and “Ratnagarbha”, Naidu said the state possesses abundant agricultural and mineral resources.

He cited deposits of barytes in Mangampeta, limestone and uranium in Kadapa, bauxite in the Visakha Agency region, galaxy granite in Chimakurthy, green granite in Kuppam, blue granite in Srikakulam, mica in Gudur, silica in Nellore, beach sand minerals along the north Andhra coast, iron ore in Anantapur and Kadapa, and natural gas and petroleum reserves in the Krishna-Godavari Basin.

The CM said the government is encouraging value-addition industries to maximise the economic potential of these resources and noted that upcoming cement, steel and mining projects will create employment opportunities for local youth within the state.

Calling Andhra Pradesh a model for speedy industrial clearances, Naidu alleged that the previous YSRCP government between 2019 and 2024 had driven away industries, whereas investors are now eager to establish projects in the state due to confidence in the NDA government’s policies.

He further announced that the foundation stone for the Rayalaseema Steel Plant in Kadapa district will be laid on July 3, with a target of commencing production by 2028.

He also highlighted the development of the Kopparthy Industrial Node and the establishment of the Royal Enfield manufacturing facility in Tirupati.