Government of Andhra Pradesh plans to auction Chigurgunta-Bisanatham gold block in Chittoor district,aiming to tap region's mineral wealth. This 273-hectare site on southern edge of the Kolar Schist Belt contains around 22.16 lakh tonnes of ore,with average gold grade of 5.64 grams per tonne.
Chief Minister Nara Chandrababu Naidu recently kicked off operations at Geomysore Services India Pvt. Ltd. (GMSI) plant at Jonnagiri gold mine, showing state's push to boost gold mining sector . Jonnagiri,in Kurnool district, set to become India's largest private gold mine, expected to produce one tonne annually.
Chigurgunta-Bisanatham block is marked for Mining Lease (ML) after geological investigations by Mineral Exploration and Research Institute of Technology (MERIT). Chigurgunta segment holds about 20.43 lakh tonnes at 5.73 g/t,while Bisanatham has 1.73 lakh tonnes at 4.70 g/t. These exceed global benchmarks for primary gold mining,making it attractive for investors.
This block is part of southern extension of Kolar Schist Belt, which includes historic Kolar Gold Fields (KGF) in Karnataka. Once a top gold producer,KGF ran over a century before closing in 2001 due to low reserves and high costs. During its peak, mines produced over 900 tonnes of gold.
Geologists say past prospecting in Chigurgunta and Bisanatham suggests KGF's gold-bearing formations stretch into Andhra Pradesh,hinting at untapped potential. But block faced hurdles in past auctions. In July 2018, National Mineral Development Corporation (NMDC) chosen as preferred bidder but later dropped out,citing high patta lands. State accepted surrender,repealed Letter of Intent in February 2025.
Second auction launched in January 2026,bids due by February 16. Preferred bidder named soon after,but auction wasn't finalized. Now,government readying new Notice Inviting Tender (NIT) for third auction,with proposals open until July 9. Mukesh Kumar Meena,Principal Secretary of Mines Department,confirmed during Jonnagiri event.
As Andhra Pradesh tries to revive gold mining sector, Chigurgunta-Bisanatham block is key opportunity. With high-grade deposits and strategic spot,it could boost state's mineral economy. Will it finally take off…?
