Chief Minister to inaugurate Gold mining project at Jonnagiri today

Rs 405 crore gold mining project to provide employment opportunity to 700 people

Metro India News | AMARAVATI

Chief Minister N Chandrababu Naidu will inaugurate  Gold mining project at Jonnagiri in Tuggali Mandal of Kurnool district tomorrow (Wednesday). He will also lay the foundation stone for the project's second unit as part of its expansion plans.The gold mining and processing project has been established with an investment of Rs 405 crore by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited. Trial runs at the mine and processing facilities have already been completed and commercial production of gold will formally commence with the  inauguration by Chief Minister.

It may be noted India's gold mining story was synonymous with Karnataka's Kolar Gold Fields (KGF). Now, Andhra Pradesh's Jonnagiri in Kurnool district is poised to carve out its own place on the country's gold map with the  country's largest private-sector gold mining project  established at Jonnagiri in Kurnool district. The government has allotted 1,500 acres for the Jonnagiri Gold Fields project, with mining activities initially commencing on 600 acres in the first phase. Necessary processing plants have already been set up and the project will be expanded to the remaining area in the second phase.The plant is expected to produce 400 kilograms of gold in its first year of operations, increasing to 900 kilograms from the following year and gradually scaling up to 2 tonnes of gold annually as processing capacity is expanded.The project is expected to generate employment for around 700 people.

The State Government will receive 4 per cent royalty on the value of gold produced. Based on current estimates, the government is expected to earn approximately Rs 57 crore in royalty from 400 kilograms of production and around Rs 144 crore from 900 kilograms of production.