VIJAYAWADA: Chief Minister N Chandrababu Naidu will inaugurate a gold mining project at Jonnagiri in Tuggali mandal of Kurnool district on Wednesday. He will also lay the foundation stone for the project’s second unit as part of its expansion plans.
The gold mining and processing project has been established with an investment of Rs 405 crore by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited.Trial runs at the mine and processing facilities have already been completed and commercial production of gold will formally commence with the inauguration by the Chief Minister.
It may be noted that India’s gold mining history was synonymous with Karnataka’s Kolar Gold Fields (KGF).Now, Andhra Pradesh’s Jonnagiri in Kurnool district is poised to carve out its own place on the country’s gold map with the country’s largest private-sector gold mining project established at Jonnagiri in Kurnool district.
The government has allotted 1,500 acres for the Jonnagiri Gold Fields project,with mining activities initially commencing on 600 acres in the first phase. Necessary processing plants have already been set up and the project will be expanded to the remaining area in the second phase.
The plant is expected to produce 400 kilograms of gold in its first year of operations, increasing to 900 kg from the following year and gradually scaling up to 2 tonnes of gold annually as processing capacity is expanded.The project is expected to generate employment for around 700 people.
The State government will receive 4 percent royalty on the value of gold produced. Based on current estimates, the government is expected to earn approximately `57 crore in royalty from 400 kg of production and around `144 crore from 900 kg of production.
According to officials, apart from Jonnagiri, Andhra Pradesh possesses several highly prospective gold-bearing blocks across Chittoor and Ananthapur districts.
The Chigurgunta-Bisanatham Gold Block in Chittoor district, located within the extension of the historic Kolar Gold Fields belt, contains estimated geological ore of over 2.2 million tonnes with an average grade of 5.64 g of gold per tonne, making it one of the country’s most attractive gold prospects.
The block is put up for auction in the fresh round of Major mineral auction in the Unified Mining portal through MSTC.
In Anantapur district, the Boksampalli North and South blocks, Ramagiri North and South blocks, and six Javakula Gold Blocks collectively represent thousands of hectares of prospective gold-bearing terrain within the Ramagiri and Veligallu Greenstone Belts. These belts are geologically comparable to the famous Kolar and Hutti gold belts and have a documented history of gold mining dating back more than a century.
The State government is currently undertaking advanced exploration programmes through the Geological Survey of India and Notified Private Exploration Agencies to establish commercially viable resources in these blocks before bringing them to auction.
Officials expect these projects to attract substantial private investment, generate employment opportunities and strengthen Andhra Pradesh’s contribution to India’s domestic gold production.
