Jonnagiri Gold Mine to Boost India’s Domestic Production

23 Apr 2026 CW Team

Certified resources at the site are reported at 13.1 tonne (t) and exploration indicates potential reserves of up to 42.5 tonne. At peak capacity the project is expected to produce nearly 1,000 kilogram (kg) of refined gold each year for the next 15 years. Hutti Gold Mines in Karnataka remains the only significant existing large producer, yielding around one point five t annually while the closure of the Kolar Gold Fields in 2000 left a long gap in large scale domestic mining.

The processing route uses open pit mining with drilling and controlled blasting followed by crushing, grinding and gravity separation before a carbon in leach system and electro winning to recover gold. Recovered material is refined and smelted into doré bars at the plant, completing the transformation from rock to saleable product. Company statements indicate the plant is in the final stage of pre commercial operations while officials say commissioning milestones are under way ahead of commercial production.

Industry observers suggest the project could encourage increased private investment in exploration for gold and other critical minerals, which may broaden the domestic supply base and ease pressure on foreign exchange. The initiative aligns with policy aims to conserve reserves and to build capacity in mineral processing and value addition within India. Further work on exploration and resource modelling will determine whether indicated quantities can be converted into economically viable long term reserves.

India will see its first large-scale private gold mine with the launch of the Jonnagiri project in Andhra Pradesh’s Kurnool district. The development, led by Geomysore Services India Pvt Ltd with backing from Thriveni Earthmovers & Infra and Deccan Gold Mines Ltd, aims to reduce the country’s reliance on imported gold and to strengthen the Aatmanirbhar Bharat vision in minerals. The mine covers nearly 598 hectares across Jonnagiri, Erragudi and Pagidirayi villages and the processing plant moved from construction to pre commercial operation in 13 months. More than Rs 4,000 million (mn) has been invested and the state government plans a dedication in early May 2026. Certified resources at the site are reported at 13.1 tonne (t) and exploration indicates potential reserves of up to 42.5 tonne. At peak capacity the project is expected to produce nearly 1,000 kilogram (kg) of refined gold each year for the next 15 years. Hutti Gold Mines in Karnataka remains the only significant existing large producer, yielding around one point five t annually while the closure of the Kolar Gold Fields in 2000 left a long gap in large scale domestic mining. The processing route uses open pit mining with drilling and controlled blasting followed by crushing, grinding and gravity separation before a carbon in leach system and electro winning to recover gold. Recovered material is refined and smelted into doré bars at the plant, completing the transformation from rock to saleable product. Company statements indicate the plant is in the final stage of pre commercial operations while officials say commissioning milestones are under way ahead of commercial production. Industry observers suggest the project could encourage increased private investment in exploration for gold and other critical minerals, which may broaden the domestic supply base and ease pressure on foreign exchange. The initiative aligns with policy aims to conserve reserves and to build capacity in mineral processing and value addition within India. Further work on exploration and resource modelling will determine whether indicated quantities can be converted into economically viable long term reserves.

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