Gold Shines in AP’s Jonnagiri: India’s First Private Mine To Begin Ops Soon

India’s first private gold mine, located across Jonnagiri, Erragudi, and Pagadirayi villages in Andhra Pradesh’s Kurnool district, is set to commence full-scale production soon.

According to sources at Deccan Gold Mines Ltd (DGML), the development comes at a crucial juncture as India remains the world’s second-largest importer of gold after crude oil, annually bringing in close to 1,000 tonnes of the precious metal.

The Jonnagiri gold project is being developed by Geomysore Services India Ltd, in which DGML—India’s only listed gold exploration company on the BSE—holds a stake. The mine has already secured environmental clearances in June and July, with final state-level approvals currently in progress.

DGML Managing Director Hanuma Prasad said project stabilization is underway. He added that the plant’s technology is being fine-tuned and that commercial production will begin shortly.

Once fully operational, the project is expected to yield around 750 kg of gold per annum, with output planned to be scaled up to nearly 1,000 kg within two to three years.

Currently, India produces just 1.5 tonnes of gold domestically. The Jonnagiri mine alone is expected to add almost one tonne annually, marking a significant boost to local output.

While the additional volume may seem small compared to the scale of imports, ramping up production will help reduce reliance on foreign supplies, conserve foreign exchange reserves, and provide greater security against global price fluctuations.

Analysts also point out that private sector participation could pave the way for more investment in exploration and mining across the country.