Andhra Pradesh Strikes Gold: Massive 50-Tonne Reserve Discovered, Mining Set to Transform India’s Gold Sector – Indian PSU

In a significant development for India’s mining sector, indications of a massive gold reserve of nearly 50 tonnes (50,000 kilograms) have emerged in Andhra Pradesh, raising hopes of reducing the country’s dependence on imported gold and strengthening domestic mineral production.

According to senior officials of the Andhra Pradesh government, substantial gold deposits have been identified in several parts of the state, particularly in the Jonnagiri region of Kurnool district. If the estimates are confirmed through further exploration, Andhra Pradesh could emerge as one of India’s leading gold-producing states in the coming years.

Addressing a press conference, Mukesh Kumar Meena, Principal Secretary, Mines Department, said that preliminary assessments indicate the presence of nearly 50 tonnes of gold reserves in the Jonnagiri area alone. Besides Jonnagiri, four additional locations—Ramagiri, Jonnagiri, Chigurukunta, and Bisanatham—have also been identified as prospective gold-bearing zones.

“Should these estimates prove accurate, Andhra Pradesh has the potential to become one of the country’s most significant sources of gold production,” Meena said.

Commercial Gold Mining Already Underway

The Principal Secretary revealed that commercial-scale gold production has already commenced in Jonnagiri. Around a decade ago, approximately 1,500 acres of land were allocated for gold mining activities in the region. However, exploration and survey work has so far been completed on only about 500 acres.

Based on surveys conducted to date, authorities estimate the presence of around 13 tonnes of gold reserves within the explored area. The remaining 1,000 acres are yet to be fully investigated, and officials believe the total reserve could eventually reach 50 tonnes once comprehensive exploration is completed.

Private Sector Participation Through Competitive Bidding

Highlighting the challenges associated with gold extraction, Meena noted that gold mining is a capital-intensive and technologically demanding industry. Consequently, the state government plans to award mining operations to private companies through a transparent bidding process.

The move is expected to attract investment, advanced technology, and operational expertise from the private sector, thereby accelerating the development of Andhra Pradesh’s gold mining ecosystem.

Recovery Rates Declining

The official also pointed out that gold recovery rates have declined significantly over the years. Earlier, miners could extract nearly 3 grams of gold per tonne of ore, whereas the current recovery rate has fallen to approximately 1 gram per tonne.

According to mining experts, projects become economically unviable when recovery rates fall below 0.8 grams per tonne, making efficient extraction technologies crucial for the success of future mining operations.

Formal Launch Expected Soon

The Andhra Pradesh government is reportedly preparing for the formal inauguration of the Jonnagiri Gold Mining Project. Officials indicated that Chief Minister N. Chandrababu Naidu may officially launch the project later this month.

The development is being closely watched by the mining industry, as successful commercial exploitation of the reserves could significantly boost domestic gold production, generate employment, attract private investment, and contribute to India’s mineral security strategy.