Swarnagiri, India's first private gold mine, begins operations
What's the story
Andhra Pradesh has inaugurated India's first private gold mining project, Swarnagiri (formerly Jonnagiri), in Kurnool district. The historic event was presided over by Chief Minister N Chandrababu Naidu. The project is a major milestone for the country's mining sector and is expected to create around 700 jobs while significantly boosting state revenue.
Project details
Only operational private primary gold mine in India
Operated by Geomysore Services India Pvt Ltd (GMSI), the Swarnagiri project is the only operational private primary gold mine in India since Independence. The ₹405 crore venture spans nearly 598 hectares in Tuggali mandal of Kurnool district. Ahead of the inauguration, the Andhra Pradesh cabinet approved renaming Jonnagiri village as 'Swarnagiri,' highlighting its growing prominence as a gold mining hub.
Economic impact
Boost to local economy and state revenue
The Swarnagiri gold mining project is expected to provide jobs for some 700 people, with nearly 80% of the workforce coming from local communities. The Andhra Pradesh government is also likely to benefit through royalties and other statutory payments linked to gold production. Officials estimate that the state could earn around ₹57 crore annually from a production level of 400kg of gold and up to ₹144 crore if output reaches 900kg.
Resource management
Landmark development for India's mining industry
The Swarnagiri project will source around 0.021 TMC of water from the Handri Neeva Sujala Sravanthi scheme through an 18-kilometer pipeline. Deccan Gold Mines Ltd MD Modali Hanuma Prasad hailed the mine as a landmark development for India's mining industry, showcasing the potential of private-sector participation in primary gold mining through advanced and sustainable practices.