Amaravati: Andhra Pradesh is on track to emerge as the country’s largest supplier of gold in the coming years, according to a senior state government official who highlighted significant gold reserves discovered across multiple mining zones.
Speaking at a press conference on Thursday, Andhra Pradesh Principal Secretary (Mines) Mukesh Kumar Meena said that the state has identified substantial gold deposits, with the Jonnagiri region in Kurnool district alone estimated to hold around 50 tonnes of gold.
“Our assessment indicates that Jonnagiri itself may contain nearly 50 tonnes of gold. With ongoing exploration and mining activities, Andhra Pradesh has the potential to become the leading gold-producing state in India in the coming years,” Meena said.
Jonnagiri Gold Project Gains Momentum
Commercial gold production has already begun at Jonnagiri, a project that was first allocated for mining nearly a decade ago. According to officials, around 1,500 acres were earmarked for gold exploration and extraction in the region.
However, detailed exploration has so far been conducted on only about 500 acres, where an estimated 13 tonnes of gold reserves have been identified. Exploration activities in the remaining 1,000 acres are yet to begin.
Officials believe that once the entire mining area is surveyed and assessed, the total gold reserves in Jonnagiri could reach nearly 50 tonnes.
Four Additional Gold-Bearing Regions Identified
Apart from Jonnagiri, the Andhra Pradesh government has identified four other promising locations for gold mining. These include:
- Ramagiri
- Javvakula
- Chigurukunta
- Bisnatam
The state is planning to accelerate exploration efforts in these regions to strengthen its gold production capacity.
Why Private Companies Are Involved
Meena noted that gold mining requires significant capital investment, advanced technology and specialised expertise. As a result, the government has opted to award mining projects to private companies through a transparent tendering process.
He also pointed out that gold extraction has become increasingly challenging over the years.
“Earlier, one tonne of mined material could yield around three grams of gold. Today, the recovery rate has dropped significantly, often to about one gram per tonne,” he said.
According to mining experts, projects become commercially unviable if gold recovery falls below 0.8 grams per tonne.
Chief Minister To Launch Project
The official further announced that Chief Minister N. Chandrababu Naidu is expected to formally launch the Jonnagiri gold mining project later this month.
The project is being viewed as a major step towards boosting Andhra Pradesh’s mining sector and reducing India’s dependence on imported gold while creating employment and investment opportunities in the region.