From Our Correspondent
Jonnagiri (Kurnool District): Andhra Pradesh took a significant step towards building a domestic gold value chain on Monday with Chief Minister N. Chandrababu Naidu formally launching the Jonnagiri Gold Fields project, a ₹405-crore investment by Geomysore Services and Deccan Gold Mines that aims to transform the region into a major gold production hub.
The Chief Minister inaugurated the mining operations by flagging off heavy earth-moving vehicles carrying mineral-bearing ore and later inspected the entire process from mining and ore processing to the production of gold bars.
The project is expected to begin with annual gold production of around 400 kilograms, scale up to 900 kilograms in the next phase and eventually reach two tonnes per year. Officials said the mine currently has the capacity to produce around one tonne of gold annually.
Addressing the gathering, Chandrababu Naidu said the project would not only contribute to India’s gold production but also generate employment and economic activity in the region.
“Every tonne of gold produced domestically helps conserve foreign exchange reserves. This project will create large-scale employment opportunities for local youth and serve as a growth engine for the entire region,” he said.
The Chief Minister said the state government intends to go beyond mining and create a complete gold ecosystem around Jonnagiri. Instead of sending the gold elsewhere for value addition, Andhra Pradesh plans to establish a jewellery park in the region to promote local manufacturing and generate additional jobs.
“We should not stop at mining. We must create value within the state. A jewellery park will help build an integrated gold industry around Jonnagiri,” Naidu said.
During his visit, the Chief Minister inspected various sections of the processing facility and reviewed the technologies used to extract gold from raw ore. Geomysore Services Chairman Prabhakaran and Managing Director Naveen Lal Chandra briefed him on the mining process, production capabilities and future expansion plans.
Naidu also visited a specialised training centre where women and young people are being trained on simulator equipment to operate heavy mining vehicles and machinery. The initiative is expected to create a skilled local workforce for mining and allied industries.
In a symbolic move highlighting the development of a local gold ecosystem, the Chief Minister handed over gold produced at the Jonnagiri Gold Fields to jewellery companies including Vasavi Jewellers, Sai Santosh Jewellers, Madhumurthy Jewellers and Emerald Jewellers.
Geomysore Services announced that gold produced in Andhra Pradesh would be sold primarily to local jewellery businesses, ensuring that the economic benefits of the project remain within the state.
The company said local sales would strengthen the regional economy, support jewellery manufacturers and create opportunities across the gold value chain.
The Jonnagiri project is one of the few operational gold mining ventures in southern India and is expected to strengthen Andhra Pradesh’s position in the mining sector while supporting the state’s broader industrialisation and employment-generation agenda.
Ministers Kollu Ravindra, Nimmala Ramanaidu and T.G. Bharat were among those present at the launch event.