India's first private gold mine inaugurated: All about Geomysore-Jonnagiri Project in Andhra Pradesh

Andhra Pradesh Chief Minister N Chandrababu Naidu has inaugurated a major private-sector gold mining and processing facility at Jonnagiri in Tuggali Mandal, Kurnool district. The gold mining facility is being developed by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited with an investment of ₹405 crore. Highlighting the long-term growth planned for the site, the Chief Minister followed up the formal launch of the first unit by laying the foundation stone for a second facility alongside state ministers Kollu Ravindra, Nimmala Ramanaidu, and TG Bharat. The extensive project spans a total allotted area of 1,500 acres, with active mining operations initially starting across 600 acres in its first development phase. To support processing logistics, the host village Jonnagiri was symbolically renamed “Swarnagiri” by the state cabinet.

Also Read: 'Is the country's gold being sold?' RBI issues fact-check as Kejriwal questions centre over reserves | WION Decodes

Why is it important for the government?

According to Andhra Pradesh government, this gold mining story is synonymous with Karnataka's Kolar Gold Fields (KGF). The plant is expected to produce 400 kilograms of gold in its first year of operations, increasing to 900 kilograms 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 per cent royalty on the value of gold produced. Based on current estimates, the government is expected to earn approximately Rs 57 crore in royalty from 400 kilograms of production and around Rs 144 crore from 900 kilograms of production.

Also Read: Why PM Modi asked Indians not to buy gold for a year? WION explains

Why is there for private firm

After Kolar Gold Fields (KGF) shut down in 2001, primary gold mining happened only in state-run Hutti Gold Mines in Karnataka. Bringing a dormant gold deposit into production is a long, expensive and high-risk process that often requires years of exploration and investment. The Swarnagiri project became possible because private company Geomysore Services India Pvt Ltd spent decades exploring the area and developing the resource. Backed by Tamil Nadu-based Thriveni Earthmovers and supported by Deccan Gold Mines, the company first acquired the prospecting rights in the 1990s, applied for a mining lease in 2006 and has now commenced commercial production after investing about ₹405 crore. Policy reforms also played a key role. Changes introduced in 2015 mandated transparent auctions for mineral blocks, while a 2021 amendment allowed private explorers who discover and establish mineral deposits to retain mining rights and commercially sell the extracted resources. Swarnagiri is among the first major gold mining projects to benefit from this framework, highlighting the growing role of private investment in India's mining sector.

From KGF to Jonnagiri

Kolar gave up an estimated 800 to 900 tonnes of gold over 120 years and sank 3.2 km, among the deepest in the world, before its ore thinned and the State abandoned it. The Swarnagiri project represents a new chapter in India's gold mining journey. According to Deccan Gold Mines, the site contains an audited resource of around 8.2 million tonnes of ore with an average gold grade of 1.49 grams per tonne, translating to nearly 12 tonnes of contained gold. The main mining pit is expected to have an operational life of eight to nine years. While the Andhra Pradesh government has indicated that the broader region may hold as much as 42.5 tonnes of gold, those estimates are still based on exploration targets and have yet to be fully verified. Unlike the deep underground workings of KGF, Swarnagiri is being developed as an open-pit mine, allowing gold-bearing ore to be extracted from the surface through large-scale excavation.