Synopsis: Swarnagiri Gold Project is set to mark a new era in India’s mining industry. India’s first large-scale private-sector gold mine is expected to produce around 900 kg of gold annually after ramping up operations. This will increase India’s local production of gold, create employment opportunities, and lessen the dependence on gold imports.
Andhra Pradesh made a historic milestone on 24th June with the inauguration of the Swarnagiri Gold Project which was previously known as the Jonnagiri Gold Mine. Commissioned by the State’s Chief Minister N. Chandrababu Naidu, this gold mining project is the first large scale gold mining project in India’s private sector since independence. As India continues to remain one of the major importers of gold in the world, it is anticipated that this gold mining project will add to the gold production of the country.
Swarnagiri Gold Project
- Located in Jonnagiri village, Tuggali Mandal, Kurnool district, Andhra Pradesh
- Developed by Geomysore Services India Pvt. Ltd., backed by Thriveni Earthmovers & Infra and Deccan Gold Mines Ltd.
- Total project investment of ₹405 crore
- Spread across 598 hectares (around 1,500 acres)
- Holds 13.1 tonnes of certified gold reserves
- Potential gold resources estimated at up to 42.5 tonnes
- Expected to produce around 400 kg of gold in FY 2026-27
- Annual gold production projected to reach around 900 kg from FY 2027-28
- Production capacity could increase to 2 tonnes per year after expansion
- Expected to create around 700 direct jobs
- More than 80% of employees are expected to be local residents
- Andhra Pradesh will receive a 4% royalty on gold production
- Recognised as India’s first large-scale private-sector gold mine since Independence
The project is located in the mineral-rich belt that stretches from Jonnagiri to Erragudi to Pagidirayi villages in Kurnool District. It is claimed that the processing plant was commissioned within 13 months, using advanced technologies of open-pit mining and ore-processing, producing gold doré bars.
Why the Project Matters
India imported around 721 tonnes of gold in FY2025-26 to meet domestic demand, but the domestic production is not sufficient. The biggest operating producer in the country, the Hutti Gold Mines, accounts for just 1.5- 2 tonnes every year. The Swarnagiri project could boost India’s gold output and serve as a blueprint for future private-sector gold mining ventures, with its capacity of up to 1 tonne of gold per year.
In addition to the actual gold output, the project will bring about wider economic gains such as:
- Direct and indirect employment generation
- Growth in mining-linked industries and services
- Development of regional infrastructure
- Higher state revenues through taxes and royalties
- Greater private-sector participation in mining
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Employment and Revenue boost
The mine is expected to create about 700 jobs. Around 80% of those jobs will go to local residents. The Andhra Pradesh government will earn revenue from mining royalties and related fees. Estimated annual government revenue:
- ₹57 crore if the mine produces 400 kg of gold per year.
- ₹144 crore if production reaches 900 kg of gold per year.
The launch of the Swarnagiri Gold Project, Andhra Pradesh is emerging as a good investment destination further. Commercial gold mining provides another driver of growth for the state, in addition to investments in manufacturing, renewable energy, logistics and technology. With increased production and exploration, the state of Andhra Pradesh is likely to become one of the prominent gold producers in India and play a significant role in the country’s mineral security in the long run.
Written by Ameet S
