Andhra Pradesh Inaugurates India's Largest Gold Mining Project at Jonnagiri

Andhra Pradesh Chief Minister N Chandrababu Naidu inaugurated India’s largest private-sector gold mining project at Jonnagiri in Kurnool district earlier this week (June 24). Geomysore Services India Pvt Ltd and Deccan Gold Mines, the companies behind the project, are investing Rs 405 crore in mining, extraction, processing, and marketing of gold bars from Jonnagiri itself. Here is why it holds significance for the region. Is this the first time gold has been found in Jonnagiri? Jonnagiri has been known as a site of gold exploration since ancient times. It was once known as Swarnagiri and was renowned during Emperor Ashoka’s period (268-232 BCE), with Ashokan inscriptions found near Erragudi. The wider Rayalaseema region has also been known as the land of precious stones and minerals. During the reign of Sri Krishnadevaraya (1509-29), gems and precious stones were traded in abundance. The Jonnagiri area is part of the Eastern Dharwar Craton, a piece of the Earth’s crust formed 3.6-2.5 billion years ago. The region is known for gold mineralisation, or when various geological processes result in the transformation of gold into extractable ore deposits. In the ’90s, evidence of digging and pounding led to the Geological Survey of India conducting a four-year-long detailed survey and identifying five blocks with potential for gold. What will the mining project involve? In 2006, Geomysore applied to the AP government for a mining lease over an area of 5.97 sq km. After submitting a mining plan to the Indian Bureau of Mines, the mining lease was approved in 2008. The company also received Environmental Clearance from the Ministry of Environment, Forest and Climate Change in 2010, valid till 2043, after which it started exploration of the area. To process the extracted rock into refined gold, the two companies will use open-pit mining alongside other technologies. The project will initially produce 400 kilograms of gold annually, increasing to 900 kilograms in the next phase and eventually reaching 2 tonnes in annual production. The government has allotted 1,500 acres for the project, PTI reported. The companies have set up an on-site training facility where a large number of women and youth are being trained on simulator machines to operate heavy mining vehicles that will transport gold-bearing ore for processing. What does it mean for Kurnool and Rayalaseema? The gold mine and processing project is the latest for Rayalaseema, an economically underdeveloped region that has been attracting investments in recent years. Plans are also afoot to create an industrial corridor towards Bengaluru in the next decade. About 100 km from the gold mining project, India’s largest drone city is coming up at the Orvakal Industrial Drone in Kurnool district. An Advanced Medium Combat Aircraft (AMCA) project is coming up at Puttaparthi in the Sri Sathya Sai district. Various other projects in the aerospace and renewable energy sectors are also set to come up in the Rayalaseema districts. Chief Minister Naidu described the Jonnagiri gold mining project as the beginning of a “golden era” in Andhra Pradesh, with potential for creating small-scale ancillary industries. Naidu also spoke about how India currently imports around 800 tonnes of gold annually, making it one of the country’s most valuable imports after crude oil. Domestic production could reduce import dependence and conserve foreign exchange . The state government will also receive royalty revenue equivalent to four per cent of the value of gold produced from the mine.