Jonnagiri gold mine in Kurnool,opened by Andhra Pradesh Chief Minister N. Chandrababu Naidu on June 24, 2026, now marks India's largest private gold mining operation. Only active site in country,expected to produce around 400 kg of gold in fiscal year 2026-27. Hopes to boost output to nearly a tonne yearly .
Spanning 597.82 hectares,mine covers villages Jonnagiri, Erragudi, Pagadirai. Developed by Geomysore Services (India), it's first private sector gold mine with integrated processing facility in India for decades. All this as India leans heavily on gold imports,bringing in record $71.98 billion worth,about 721 tonnes, in 2025-26,says Commerce Ministry.
Gold mining in India led by Kolar Gold Fields (KGF) until its shutdown in 2001, ending primary gold mining. Now only state-owned Hutti mine in Karnataka remains. Geomysore, active since 1990s, got mining lease in 2006, investing ₹405 crore to make Jonnagiri happen.
New laws opened door for this private push. Since 2015, mineral blocks auctioned,and a 2021 change lets private explorers mine and sell gold openly. Jonnagiri first big private mine to benefit from these rules.
Andhra Pradesh gains without financial risk. State gets 4% royalty on gold's value,around ₹57 crore first year,potentially rising to ₹144 crore as output climbs. Part of royalty aids District Mineral Foundation to support communities hit by mining.
Mine to create about 600 jobs, split between direct and indirect. In development plan,state suggests renaming Jonnagiri to "Swarnagiri," or Golden Hill,fitting with Naidu's vision for thriving economy by 2047.
On Jonnagiri greenstone belt,mine uses open-pit method. Geomysore's plan allows extraction of 0.4 million tonnes of ore yearly . Process involves drilling,blasting,crushing ore, then cyanide leaching to separate gold,smelted on-site into dore bars.
Water comes from Handri-Neeva Sujala Sravanthi canal, piped 18 km . Geomysore also involved in community projects, drilling 40 bore wells for drinking water for 3,000 residents and two schools in summer .
Jonnagiri's current reserves at 12 tonnes of gold, but state hints at larger potential of up to 42.5 tonnes. Though this is speculative until further exploration . Mine's lifespan expected at eight to nine years based on present estimates…
