India is set to witness a major milestone in its mining sector with the launch of the Jonnagiri gold project in Andhra Pradesh’s Kurnool district. This project is the country’s first large-scale private gold mine since Independence. It is expected to reduce India’s dependence on imported gold and support the vision of self-reliance in the mineral sector.

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India’s Dependence on Imported Gold

India imports more than 800 tonnes of gold every year, which puts pressure on foreign exchange reserves. Domestic gold production has been very low for many years. Hutti Gold Mines in Karnataka remains the only major producer, with around 1.5 tonnes annually. The closure of Kolar Gold Fields in 2000 created a big gap in gold mining, increasing dependence on imports.

Jonnagiri Gold Mine Boost Scale

The Jonnagiri gold mine covers around 598 hectares across Jonnagiri, Erragudi, and Pagidirayi villages in Kurnool district. The project is developed by Geomysore Services India Pvt Ltd, supported by Thriveni Earthmovers & Infra and Deccan Gold Mines Ltd. Over ₹400 crore has already been invested. Andhra Pradesh Chief Minister N. Chandrababu Naidu is expected to dedicate the mine to the nation in May 2026.

Production Capacity and Economic Importance

The processing plant was completed in just 13 months and is now in the final stage before full operations. Certified gold resources stand at 13.1 tonnes, with possible reserves reaching 42.5 tonnes. At full capacity, the mine is expected to produce about 1,000 kg of gold every year for the next 15 years. This project can attract more private investment in mining and boost India’s mineral sector growth.

Jonnagiri Gold Mine Boost: Gold Processing

The mining process starts with open-pit mining using drilling and controlled blasting. The gold-bearing ore is then transported to a processing plant, where it is crushed into fine particles. Gravity separation is used to recover larger gold pieces. Smaller particles go through a carbon-in-leach process using a cyanide solution to extract gold. The metal is then absorbed, purified, and finally melted in furnaces to produce doré gold bars.