CM Naidu to inaugurate Rs 405-crore gold mining project in Kurnool
Andhra Pradesh Chief Minister N. Chandrababu Naidu will inaugurate a Rs 405-crore gold mining project at Jonnagiri in Kurnool district, marking the start of commercial production. The project is expected to boost employment, revenues and industrial growth in the state
Amaravati: Andhra Pradesh Chief Minister N Chandrababu Naidu will inaugurate a Rs 405-crore gold mining and processing project at Jonnagiri in Kurnool district on Wednesday, marking the commencement of commercial gold production in the state.
The chief minister will also lay the foundation stone for the project’s second unit as part of the expansion plans of the facility established by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited.
“The gold mining and processing project has been established with an investment of Rs 405 crore and commercial production of gold will formally commence with its inauguration by the chief minister,” an official release on Tuesday said.
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.
The state government has allotted 1,500 acres for the Jonnagiri gold fields project, with mining operations initially commencing on 600 acres in the first phase, while processing facilities have already been established.
The project will be expanded to the remaining area in the second phase as production capacity increases, the release said.
The plant is expected to produce 400 kilograms of gold during its first year of operations, which is projected to rise to 900 kilograms annually from the following year and gradually scale up to two tonne per year.
The project is expected to generate employment opportunities for around 700 people while contributing to the state’s industrial development.
The Andhra Pradesh government will receive a four per cent royalty on the value of gold produced at the mine.
Based on current estimates, the state is expected to earn around Rs 57 crore in royalty from the production of 400 kilograms of gold and approximately Rs 144 crore from the production of 900 kilograms, it said.
As per the schedule, the chief minister will arrive at Jonnagiri at 11.45 am and inaugurate the first unit of the gold processing plant besides laying the foundation stone for the second unit at 12.20 pm.
He will later address a public meeting at Jonnagiri and subsequently interact with TDP leaders and party workers of the Pattikonda Assembly constituency.
