Jonnagiri Gold Mine Inaugurated in Andhra Pradesh: CM Chandrababu Naidu Launches India’s Largest Private Gold Project
The Chief Minister symbolically handed over the first batch of gold produced at the mine to leading state-based jewellery firms — Vasavi Jewelers, Sai Santosh Jewelers, Madhumurthi Jewelers, and Emerald Jewelers. The initiative aligns with the state’s vision to ensure that locally extracted resources primarily benefit local industries and people.
Geo Mysore Services India Pvt Ltd (GMSI) is developing the mine with an investment of approximately ₹405 crore. The open-pit mine spreads across 597.82 hectares in Jonnagiri, Erragudi, and Pagidirai villages in Tuggali Mandal. The company has committed to selling the entire gold output to jewellery businesses within Andhra Pradesh to strengthen the local economy.
Production and Economic Impact
The mine is targeting 400 kg of gold production in the current financial year (2026-27) and plans to scale up to 1 tonne (1,000 kg) annually in the coming years. Estimated reserves stand at around 12 tonnes. The project is expected to generate direct employment for 300 people and indirect jobs for another 300.
The state government anticipates royalty revenue of around ₹57 crore in the first year, which could rise to ₹144 crore per annum once the mine reaches full capacity. These funds will support local development through the District Mineral Foundation. The project forms a key part of the state’s ambitious ‘Swarna Andhra 2047’ vision.
As part of the programme, CM Naidu visited a simulator training centre set up to train women and youth to operate heavy mining vehicles. He also flagged off heavy vehicles for ore transportation.
Strategic Significance
Officials highlighted that the mine will process ore on-site and produce gold bars using water sourced from the Handri Neeva canal through an 18-km pipeline. Experts view the Jonnagiri project as an important step towards reducing India’s heavy dependence on gold imports by increasing domestic production.
There is also a proposal to rename the Jonnagiri area as ‘Swarnagiri’ (Golden Hill) to reflect its new identity.
