Mining – Andhra Pradesh Opens New Era with Swarnagiri Gold Mining Project
Mining – Andhra Pradesh has taken a major step in expanding its mining sector with the launch of its first large-scale private gold production project, marking a significant milestone for industrial and economic development.
Chief Minister N. Chandrababu Naidu on Wednesday inaugurated the Rs 405 crore Jonnagiri Gold Mining and Processing Project in Kurnool district, officially renaming the area as “Swarnagiri.” The launch marks the beginning of commercial gold production in Andhra Pradesh and represents the country’s first large-scale private gold mining venture. During the event, the Chief Minister described the occasion as the start of a new phase in the State’s development journey, particularly for the Rayalaseema region.
Commercial Gold Production Begins
The project has been developed by Geomysore Services India Pvt. Ltd. in collaboration with Thriveni Earthmovers and Deccan Gold Mines Ltd. Commercial production has commenced with the first phase, while the foundation stone for the second phase was also laid during the inauguration. The mine is expected to produce around 400 kilograms of gold annually in its initial stage. Production capacity is planned to increase to 900 kilograms in the coming years before eventually reaching nearly two tonnes every year.
Focus on Skills and Local Employment
As part of the inauguration programme, the Chief Minister flagged off ore transport vehicles and visited a dedicated training centre established at the project site. The facility provides advanced simulator-based training to women and young people for operating heavy mining equipment. The initiative aims to prepare local residents for employment opportunities created by the mining project while supporting the development of a skilled workforce.
Historic Legacy Linked to Modern Development
Addressing a public gathering, Naidu recalled that the region was historically known as “Suvarnagiri” during the Mauryan period. Referring to the nearby Ashokan inscriptions at Yerragudi, he said the area has long been associated with mineral wealth and expressed confidence that it would regain its historical importance through responsible resource development and industrial expansion.
Jewellery Park Planned at Swarnagiri
The Chief Minister announced plans to establish a jewellery park at Swarnagiri to ensure that gold extracted from the mine is processed and converted into jewellery within Andhra Pradesh. He also proposed introducing helicopter-based transportation of gold from the mining site to airports, aiming to improve the security and efficiency of logistics for the precious metal.
Rayalaseema Development Vision
Highlighting Andhra Pradesh’s diverse mineral resources, Naidu noted that the State possesses reserves of gold, barytes, limestone, iron ore, granite, silica sand and natural gas. He outlined several infrastructure and industrial initiatives planned for Rayalaseema, including the establishment of a High Court Bench in Kurnool, development of the Orvakal Industrial Node and the proposed construction of the country’s largest Drone City in the district.
The Chief Minister also referred to other ongoing industrial investments across the region, including the fifth-generation fighter aircraft project in Anantapur, the Rayalaseema Steel Plant in Kadapa, the Kopparthy Industrial Node and the Royal Enfield manufacturing facility in Tirupati.
Recognition for Mineral Exploration
During the event, noted geologist and mineral explorer Charles E.E. Devenish was honoured for his contribution to identifying and developing gold deposits at Jonnagiri. The mining company also presented the Chief Minister with a gold-crafted map of Andhra Pradesh made using gold extracted from Swarnagiri. The commemorative piece is expected to be displayed in the proposed museum at Amaravati.
The ceremony concluded with the formal handover of gold produced at the mine to several leading jewellery businesses, including Vasavi Jewellers, Sai Santosh Jewellers, Madhu Murthy Jewellers and Emerald Jewellers. The company stated that gold mined at Swarnagiri will primarily be supplied to local jewellery manufacturers, a move expected to strengthen the State’s economy and encourage value-added production within Andhra Pradesh.