India's first private gold mine is now operational: How much gold will it produce?

For the first time since independence, a privately owned gold mine is commercially operational in India after Andhra Pradesh Chief Minister N. Chandrababu Naidu inaugurated the gold mining and processing project at Jonnagiri in the Kurnool district on Wednesday.

The project, built at an investment of Rs 405 crore, is operated by Geomysore Services India Pvt Ltd in partnership with Deccan Gold Mines Ltd and spans nearly 598 hectares in Tuggali mandal, making it the country’s only operational private primary gold mine.

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Andhra's golden ambition

Ahead of the inauguration, the Andhra Pradesh cabinet approved renaming Jonnagiri village as Swarnagiri. The project “opens a new chapter” for the state’s mining sector and is expected to support industrial growth and employment generation.

Naidu said the initiative fits into his vision of transforming Andhra Pradesh into “Swarnandhra Pradesh” by 2047 as part of the Viksit Bharat mission. The chief minister expressed hope that the project would usher in a “golden future” for the local area.

From trial runs to treasure

Trial production at the mine began in May, and Wednesday’s event marked the formal shift to full commercial operations.

The state government has allotted 1,500 acres for the project, with mining already underway on 600 acres in the first phase and further expansion planned in stages.

The mine is targeting about 400 kg of gold in its first full year of commercial operations in 2026-27, with output projected to rise to around one tonne later. Once the second processing unit becomes operational, total annual production could increase to nearly two tonnes.

Riches beyond the rock

The project is also expected to provide a significant boost to local employment. More than 700 jobs are likely to be created, with nearly 80% of the workforce expected to come from nearby communities.

State authorities estimate that Andhra Pradesh could earn around Rs 57 crore in royalties and other statutory revenues if the mine produces 400 kg of gold annually. That figure could rise to about Rs 144 crore if output reaches 900 kg a year.

The Jonnagiri project lies within the Chigurgunta-Bisanatham mineralised belt, an area identified by the Ministry of Mines as having substantial gold potential. The ministry calculated that the belt had more than 2.2 million tonnes of ore resources in 2023, with an average gold grade of more than 5.6 grams per tonne.

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FAQs

Q1: What is India’s first private gold mine?

Ans: India’s first private gold mine is the Jonnagiri Gold Project in Andhra Pradesh’s Kurnool district, operated by Geomysore Services India Pvt Ltd.

Q2: How much gold will the Jonnagiri mine produce?

Ans: The mine is expected to produce around 400 kg of gold annually initially, with output projected to rise to up to 2 tonnes a year after expansion.