First Large-Scale Private Gold Mine Since Independence Begins Production; Andhra Pradesh Emerges as India’s New Gold Hub
New Delhi/Amaravati: In a landmark development for India’s mining sector, the country has entered a new era of domestic gold production with the commencement of commercial operations at the Jonnagiri Gold Mine in Andhra Pradesh’s Kurnool district. The ₹405-crore project, hailed as India’s first large-scale private gold mine since Independence, promises to reduce the nation’s dependence on imported gold while unlocking fresh opportunities for employment, industrial growth and mineral exploration.
The launch is particularly significant as India imports nearly 800 tonnes of gold every year despite possessing substantial untapped reserves. With Jonnagiri now operational, policymakers and industry experts believe the project could become a turning point in India’s quest for mineral self-reliance.
#ChandrababuNaidu inaugurated Andhra Pradesh’s Jonnagiri Gold Mines (JGM) in Kurnool. pic.twitter.com/2MOgRAHFnu
— Gulte (@GulteOfficial) June 24, 2026
A Historic Mine Reawakens After Two Millennia
The Jonnagiri gold belt has been known for its rich mineral deposits since ancient times. After lying dormant for nearly 2,000 years, the historic mine has returned to commercial production, transforming a once-forgotten mining region into one of India’s most promising mineral hubs.
The project also marks the return of large-scale gold mining to India decades after the closure of the legendary Kolar Gold Fields, signalling a new chapter in the country’s mining history.
India’s First Major Private Gold Mining Venture
Developed by Geomysore Services India Pvt. Ltd. with strategic support from Thriveni Earthmovers and Deccan Gold Mines Ltd., the project is India’s first integrated private-sector gold mining and processing venture after Independence.
Spread across nearly 598 hectares covering Jonnagiri, Yerragudi and Pagidirai villages in Kurnool district, the mine combines modern extraction technology with advanced ore-processing facilities designed for sustainable operations.
Jonnagiri: India’s first private gold mine
Andhra Pradesh Chief Minister Chandrababu Naidu launches Rs. 405 crore gold project
400 kg of gold to be produced in the first year @AadhyaJunejaa has more details in this report pic.twitter.com/wegrAepRi1
— WION (@WIONews) June 25, 2026
₹405-Crore Investment to Produce Nearly One Tonne of Gold Every Year
The project has attracted an investment of over ₹405 crore and is expected to produce around 900 kilograms of refined gold annually during its initial phase. As operations stabilise, annual production is projected to touch 1,000 kilograms, making it one of India’s largest domestic gold producers.
The processing plant currently handles around 1,000 tonnes of ore per day, with plans to expand capacity significantly in the coming years.
Rich Gold Reserves Offer Long-Term Potential
Extensive geological surveys have confirmed over 13 tonnes of certified gold resources, while ongoing exploration indicates that the broader mineral belt could contain more than 40 tonnes of gold.
Mining experts estimate that these reserves could sustain commercial production for well over a decade, with future discoveries likely to extend the mine’s operational life.
Employment, Infrastructure and Local Economy Set for Major Boost
Beyond gold production, the project is expected to reshape the economic landscape of Kurnool district.
Hundreds of direct jobs and several hundred indirect employment opportunities are expected to be created, with priority being given to local residents. Improved roads, transport facilities, support industries, skill development and business opportunities are also expected to follow as mining activities expand.
Reducing India’s Gold Import Bill
India remains one of the world’s largest consumers of gold but depends overwhelmingly on imports, leading to a significant outflow of foreign exchange every year.
Although Jonnagiri’s annual production represents only a fraction of national demand, industry experts believe the mine is strategically important because it demonstrates that commercially viable private gold mining is possible in India. Similar projects in other mineral-rich regions could substantially strengthen domestic production over the coming years.
A Catalyst for India’s Mining Revolution
The success of the Jonnagiri Gold Mine is expected to encourage greater private investment in mineral exploration and accelerate reforms in India’s mining sector. Industry leaders believe the project could become a blueprint for developing untapped reserves of gold and other critical minerals across the country.
More than just a mining project, Jonnagiri represents India’s growing confidence in harnessing its own natural resources. If replicated elsewhere, it could reduce import dependence, generate employment, strengthen regional economies and usher in a new era of sustainable mineral development—truly making Jonnagiri the cornerstone of India’s modern “Golden Age.”
