Andhra Pradesh to Host India’s First Large-Scale Private Gold Mine Since Independence

Andhra Pradesh is set to host India’s first large-scale private gold mining project since Independence, with the Jonnagiri mine in Kurnool district expected to begin operations in early May. 

Project Details

• Developed by Geomysore Services India Pvt Ltd.
• Located across Jonnagiri, Erragudi, and Pagidirayi villages.
• Covers nearly 598 hectares.
• Attracted investments of over ₹400 crore.
• Andhra Pradesh CM N. Chandrababu Naidu is expected to dedicate the mine to the nation.

Significance

• Marks a major shift in India’s gold mining landscape, reviving large-scale domestic production.
• Could help reduce India’s heavy reliance on gold imports, which currently exceed 800 tonnes annually, putting pressure on foreign exchange reserves.

Background

• Domestic gold production has remained limited:
  • Hutti Gold Mines produces only about 1.5 tonnes annually.
• The closure of Kolar Gold Fields in 2000 created a gap in large-scale mining.
• Public sector firms like NMDC Ltd have largely focused on overseas gold assets instead of domestic mining.

Global Context

• China is the largest gold producer, contributing about 10–11% of global output (360–380 tonnes annually).

Switzerland is the largest exporter and importer of gold, acting as a major refining and trading centre.