Andhra Pradesh has positioned itself to become India's largest gold supplier through significant reserve estimates at its Jonnagiri village in Kurnool district. According to reports from The Hindu BusinessLine and PTI, Mukesh Kumar Meena, principal secretary (Mines), announced that the state has 50 tonnes of gold reserves at Jonnagiri alone, with commercial production already commenced. The official expressed confidence that after a few years, Andhra Pradesh will emerge as the highest supplier of gold for the country.
The state has identified four additional potential gold mining areas beyond Jonnagiri to further expand its gold production capabilities. As reported by The Hindu BusinessLine and PTI, these areas include Ramagiri, Javvakula and Chigurukunta Bisnatam, representing a comprehensive mining strategy across multiple locations. Meena noted that gold mining is capital-intensive and expertise-heavy, justifying the government's decision to entrust gold mining to private players through tenders.
Commercial gold production has already begun at Jonnagiri village, where 1,500 acres were allotted for gold mining almost a decade ago. According to the official statement, exploration was undertaken in approximately 500 acres, yielding an estimated 13 tonnes of gold availability. The remaining 1,000 acres of the allocated mining area is pending exploration, which will contribute to the total estimated reserves of 50 tonnes for Jonnagiri alone. As per PTI, this comprehensive exploration will begin soon, further boosting the state's gold reserves.
The mining sector faces significant challenges with gold recovery rates declining substantially over the years. As reported by The Hindu BusinessLine and PTI, gold recovery has plummeted to only one gram of gold per tonne of mined material, compared to earlier yields of three grams per tonne. Meena emphasized that recovery thresholds below 0.8 grams are not economical, highlighting the industry's operational challenges and the need for improved mining techniques.
Chief Minister N Chandrababu Naidu will officially launch Jonnagiri gold mining later this month, marking a significant milestone in the state's mining development. According to PTI, this launch will formalize the commercial operations at the site and represent the state's commitment to advancing its gold mining capabilities across multiple locations. The official launch will provide formal recognition to the state's position as a major gold supplier and signal the commencement of full-scale commercial operations.
