- India's first private gold mine opens in Andhra Pradesh.
- Rs 405 crore project to boost domestic gold production.
- Creates 700 jobs, significant royalty for state government.
In a significant milestone for India's mining sector, a privately owned gold mine has commenced commercial operations for the first time since Independence. Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday inaugurated the Rs 405-crore gold mining and processing project at Jonnagiri in the state's Kurnool district.
During the event, the Chief Minister not only inaugurated the first operational unit but also laid the foundation stone for the second phase of the project, which aims to strengthen India's domestic gold production.
A Look At Investment And Infrastructure
An investment of Rs 405 crore has been made by Geomysore Services India Private Limited, in partnership with Deccan Gold Mines Limited and Triveni Earthmovers, to revive this location as the country's only operational, privately owned primary gold mine.
Unlike surface or alluvial mining, a primary gold mine utilises a hard-rock mining process to extract gold directly from underground ore bodies and quartz veins. The state government has allocated 1,500 acres for the project, with work already underway on approximately 600 acres in the first phase.
To ensure smooth and uninterrupted operation of the mine, a water supply has been established by laying an 18 km long pipeline through the state's 'Handri-Neeva Sujala Sravanthi' project.
Reduce Foreign Reliance And Boost Production
Currently, India produces only 1.5 tonnes of gold annually, meeting barely 1 per cent of its total domestic consumption. The Swarnagiri mine is expected to play a significant role in reducing India's foreign dependence and saving foreign exchange.
Furthermore, the commissioning of this facility breaks the long-standing monopoly of the state-owned Hutti Gold Mines in Karnataka, which previously accounted for 99 per cent of the country's local gold production, Jagran.com reported.
To Produce 900 Kilograms Of Gold Every Year
The target is to extract approximately 400 kilograms of gold in the first year of commercial operation, representing approximately 20 per cent of India's current domestic production. This production is expected to scale up between 900 and 1,000 kilograms in the second year.
Once the second phase of the processing unit becomes operational, the company plans to increase the total capacity to 2 tonnes per annum within three years, increasing its share to more than 50 per cent of the country's domestic gold production.
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Economic Benefits For State Govt And Employment Opportunities For Locals
The inauguration of this mine is expected to bring significant economic benefits to both local residents and the state government.
The Andhra Pradesh government will receive a 4 per cent royalty on the total value of gold produced from the project. The government will earn approximately Rs 57 crore annually from an initial production of 400 kilograms, and when production increases to 900 kilograms, this revenue will reach Rs 144 crore per year, the report added.
Additionally, the mining project will directly employ approximately 700 people, with the Chief Minister clarifying that around 80 per cent of this workforce will be recruited from local communities.
(With Inputs From Jagran.com)