Jonnagiri Gold Mine to Boost Domestic Production
COAL & MINING

Jonnagiri Gold Mine to Boost Domestic Production

Andhra Pradesh inaugurated the Jonnagiri gold mining and processing project in Kurnool district, marking the first commercial-scale private-sector gold mine since Independence. Lloyds Metals and Energy and Geo Mysore Services India Pvt Ltd led the development with strategic backing from the Thriveni Group. The state chief minister and company leadership presided over the inauguration and outlined the project objectives.

The project involved investment of Rs 4,050 million (mn) and occupies nearly 598 hectares across Jonnagiri, Erragudi and Pagidirayi villages. It is expected to produce up to 1,000 kilogram (kg) of refined gold annually at peak capacity and has an estimated operational life of about 15 years. Development partners indicated that the facility establishes a domestic refining capability to support a Made in India refined gold value chain.

The company has certified gold resources of approximately 13.1 tonne (t) and ongoing exploration programmes point to potential to increase resources across the mineralised belt. The commencement of commercial production assumes strategic importance because India imports between 700 and 1,000 t of gold annually to meet domestic demand. Project proponents argued that indigenous commercial-scale production will reduce import dependence and enhance resource security.

Executives framed the mine as a catalyst for regional economic activity, forecasting employment generation, additional investments, royalty payments and tax revenues that would benefit local enterprises. They said the initiative formed part of a wider ambition to create a sustainable domestic gold ecosystem and to attract further exploration and investment in the sector. Andhra Pradesh was presented as well placed to emerge as a leading gold-producing state as exploration advances.

Company statements noted that the inauguration coincided with elevated global gold prices and market volatility, reinforcing the value of reliable domestic supply. Stakeholders described the project as a milestone in establishing a resilient domestic gold value chain. Officials signalled that the operation will be monitored as exploration and commercial activity continue.

Andhra Pradesh inaugurated the Jonnagiri gold mining and processing project in Kurnool district, marking the first commercial-scale private-sector gold mine since Independence. Lloyds Metals and Energy and Geo Mysore Services India Pvt Ltd led the development with strategic backing from the Thriveni Group. The state chief minister and company leadership presided over the inauguration and outlined the project objectives. The project involved investment of Rs 4,050 million (mn) and occupies nearly 598 hectares across Jonnagiri, Erragudi and Pagidirayi villages. It is expected to produce up to 1,000 kilogram (kg) of refined gold annually at peak capacity and has an estimated operational life of about 15 years. Development partners indicated that the facility establishes a domestic refining capability to support a Made in India refined gold value chain. The company has certified gold resources of approximately 13.1 tonne (t) and ongoing exploration programmes point to potential to increase resources across the mineralised belt. The commencement of commercial production assumes strategic importance because India imports between 700 and 1,000 t of gold annually to meet domestic demand. Project proponents argued that indigenous commercial-scale production will reduce import dependence and enhance resource security. Executives framed the mine as a catalyst for regional economic activity, forecasting employment generation, additional investments, royalty payments and tax revenues that would benefit local enterprises. They said the initiative formed part of a wider ambition to create a sustainable domestic gold ecosystem and to attract further exploration and investment in the sector. Andhra Pradesh was presented as well placed to emerge as a leading gold-producing state as exploration advances. Company statements noted that the inauguration coincided with elevated global gold prices and market volatility, reinforcing the value of reliable domestic supply. Stakeholders described the project as a milestone in establishing a resilient domestic gold value chain. Officials signalled that the operation will be monitored as exploration and commercial activity continue.

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