Andhra Pradesh Discovers 50 Tonnes of Gold Reserves, Set to Become India’s Major Gold Mining Hub

Massive Gold Deposits in Kurnool Could Boost Domestic Production and Reduce Import Dependence

Andhra Pradesh is emerging as a potential powerhouse in India's gold mining sector after the discovery of significant gold reserves estimated at nearly 50 tonnes in Kurnool district. The development is expected to strengthen domestic gold production and reduce the country's heavy reliance on imported precious metals.

State officials believe that with ongoing exploration and mining projects, Andhra Pradesh could become one of India's leading gold-producing states in the coming years.

50-Tonne Gold Reserve Identified at Jonnagiri

The state's mining authorities have identified substantial gold deposits at Jonnagiri village in Kurnool district. According to officials, the site contains an estimated 50 tonnes of gold reserves, making it one of the most promising gold mining projects in the country.

Apart from Jonnagiri, the government has also identified several other prospective gold-bearing regions, including:

• Ramagiri
• Javvakula
• Chigurukunta-Bisnatam

These discoveries are part of a broader strategy to expand mineral exploration and attract investments in the mining sector.

India's First Large-Scale Private Gold Mining Project

The Jonnagiri Gold Project has already gained attention as India's first major private-sector gold mining venture since Independence.

Developed by Geomysore Services India Private Limited, the project has attracted investments exceeding ₹400 crore. Spread across nearly 598 hectares, the open-pit mining operation is expected to significantly contribute to India's domestic gold supply.

At full operational capacity, the mine is projected to produce up to 1,000 kilograms of refined gold annually over the next 15 years.

Why the Discovery Matters for India

India remains one of the world's largest consumers of gold, with annual demand exceeding 800 tonnes. However, domestic production remains extremely limited.

Following the closure of the historic Kolar Gold Fields in Karnataka in 2000, India has relied heavily on imports to meet consumer and industrial demand. Currently, Hutti Gold Mines in Karnataka remains the country's primary active gold producer, generating around 1.5 tonnes of gold annually.

The expansion of gold mining activities in Andhra Pradesh could help improve supply security, reduce import dependency, and support India's long-term mineral self-reliance goals.

Advanced Technology Driving Modern Gold Extraction

Mining officials noted that extracting gold from modern deposits requires advanced technology and significant investment.

Unlike earlier decades when gold concentrations were higher, current operations often recover only about one gram of gold from every tonne of processed ore. As a result, mining companies rely on sophisticated extraction techniques to ensure economic viability.

The Jonnagiri project utilizes advanced crushing systems, carbon-in-leach processing technology, and modern smelting facilities to maximize gold recovery and produce high-purity doré bars.

More Exploration Underway

Large portions of the allocated mining area are still undergoing detailed exploration, raising expectations that the current reserve estimates could increase further.

With additional gold-bearing regions under evaluation and private investment continuing to flow into the sector, Andhra Pradesh is positioning itself as a key contributor to India's future gold production landscape.

Industry experts believe the state's growing mining ecosystem could play an important role in strengthening India's resource security and supporting economic growth through mineral development.

Inputs from Agency