After Jonnagiri, AP eyes ‘New KGF’ at Kuppam

Metro India News | AMARAVATI

Riding on the successful commissioning of the Jonnagiri Gold Project in Kurnool district, the Andhra Pradesh government is now shifting its focus to reviving another historic gold-bearing region in the state. The Chigurugunta–Bisanatham Gold Project in Kuppam constituency of Chittoor district, popularly referred to as the “New KGF (Kuppam Gold Fields),” is being readied for a fresh mineral block auction, signalling the government’s broader strategy to position Andhra Pradesh as a major destination for gold mining and mineral-based industries.

Officials said the move comes as part of the state’s efforts to unlock its untapped mineral wealth following the launch of commercial gold production at Jonnagiri, where “Made in Andhra” gold has already entered the market. Encouraged by the response from investors and the jewellery industry, the government is now accelerating the development of other prospective gold blocks across the state.

The Chigurugunta–Bisanatham belt has long been identified by geologists as a promising gold-bearing zone with a rich mining history. The area witnessed exploration activities several decades ago and has since remained one of the state’s key identified gold prospects. With renewed interest in domestic gold production, the government is preparing the block for auction under the Centre’s transparent mineral allocation framework to attract experienced mining companies.

Officials believe the proposed auction could pave the way for significant private investment in exploration, mining infrastructure and downstream industries. Apart from boosting gold production, the project is expected to generate employment for local youth, create business opportunities for ancillary industries and strengthen economic activity in the Rayalaseema region.

The proposed revival also complements the state’s larger vision of developing an integrated gold ecosystem. Following the success of Jonnagiri, the government is exploring the establishment of jewellery manufacturing clusters, value-addition units and refining facilities to maximise economic benefits from locally mined gold. Industry experts believe Kuppam’s strategic location and mineral potential make it an ideal candidate for such integrated development.

A senior official associated with the mining department said, “The success of the Jonnagiri Gold Project has demonstrated Andhra Pradesh’s potential in commercial gold mining. The government is now actively working towards auctioning the Chigurugunta–Bisanatham gold block to attract credible investors. Our objective is not merely to increase gold production but to build a complete gold value chain that generates employment, promotes industrial growth and strengthens the state’s mining sector.”

If the proposed auction receives a strong investor response, the Chigurugunta–Bisanatham project could emerge as Andhra Pradesh’s second major commercial gold mine, further reinforcing the state’s emergence as an important player in India’s domestic gold production landscape.