JONNAGIRI: Lloyds Metals and Energy Chairman B Prabhakaran on Thursday said the newly inaugurated Rs 405-crore gold mining and processing project in Kurnool district would significantly bolster India's domestic gold production capabilities.
The mine, inaugurated by Andhra Pradesh Chief Minister N Chandrababu Naidu along with Prabhakaran in Kurnool district on Wednesday, marked 'India's first commercial-scale private-sector gold mining operation since Independence'.
"Jonnagiri Gold Mine marks the beginning of a new chapter for India's gold mining industry. For decades, India has remained one of the world's largest consumers of gold while being heavily dependent on imports," said Prabhakaran in a press release.
The Chairman said the mine would reduce the country's dependence on imports and lay the foundation for a globally competitive "Made in India" refined gold value chain.
Situated across Jonnagiri, Erragudi and Pagidirayi villages in Kurnool district, the project has been developed by Geo Mysore Services India Pvt Ltd with strategic backing from Lloyds Metals & Energy and the Thriveni Group.
Spread over nearly 598 hectares with investments exceeding Rs 400 crore, the mine is expected to produce up to 1,000 kg of refined gold annually at peak capacity and has an estimated operational life of around 15 years.
The Chairman said that the company's vision extends well beyond a single mining project and envisages the creation of a sustainable domestic gold ecosystem that would foster economic growth, generate employment, strengthen national resource security.
According to Prabhakaran, the project currently hosts certified gold resources of approximately 13.1 tonnes, while ongoing exploration programmes indicate the potential to substantially augment resources across the broader mineralised belt.
He said the commencement of commercial production assumes added significance as India imports between 700 and 1,000 tonnes of gold every year to cater to domestic demand, making indigenous commercial-scale production strategically important.
Prabhakaran noted that the inauguration comes at a time when global gold prices are hovering near historic highs and market volatility remains elevated, underscoring the importance of establishing reliable domestic sources of the precious metal.
According to him, the project would play a pivotal role in reducing India's reliance on imported gold while stimulating regional economic activity through employment generation, investments, royalty payments and tax revenues, besides creating opportunities for local enterprises.
Jonnagiri gold mine to bolster domestic production, advance 'Made in India' ecosystem: Lloyds Metals Chairman B Prabhakaran Prabhakaran expressed confidence that the project would catalyse fresh exploration and investments across India's gold mining sector, with Andhra Pradesh well positioned to emerge as one of the country's leading gold-producing states as exploration activities continue across the region.
The company said the commencement of commercial operations at Jonnagiri represents a significant milestone in establishing a resilient domestic gold value chain.