A Rs 405 crore gold mining project was inaugurated in Kurnool, Andhra Pradesh, marking the start of commercial gold production in the state.
Published: June 25, 2026, 11:20 AM IST
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THIS gold mine is expected to produce 400 kg of gold in 2026-27, it is in…, becomes India’s largest private gold mine (Pic:X)
The Jonnagiri gold mine in Kurnool is India’s largest private gold mine and, for now, its only operating one. It is expected to produce about 400 kg of gold in 2026-27 and to climb towards a tonne a year.
This marks the commencement of commercial gold production in the state. A government statement said, “This project opens a new chapter for Andhra Pradesh in the mining sector and is expected to significantly contribute to industrial development and employment generation.” The government has allocated 1,500 acres of land for the project, of which mining has begun on 600 acres in the first phase.
How will the state benefit?
According to project estimates, gold production is expected to reach 400 kilograms in the first year of operation and increase to 900 kilograms annually from the second year. There are plans to further increase production to two tons annually.
The state government will earn a royalty equivalent to four percent of the value of the gold produced from the mine. Based on current estimates, Andhra Pradesh could earn approximately ₹57 crore in royalties from producing 400 kilograms of gold, and approximately ₹144 crore if annual production reaches 900 kilograms.
How many people will get employment?
The project is expected to generate employment opportunities for approximately 700 people. It is being described as the country’s largest private sector gold mining venture. Several reports also claim that over 50 tons of gold is buried here.
Where is gold mining done in India?
India’s gold mines are primarily produced at the Hutti Gold Mines in Karnataka. There are also some gold mines in states like Andhra Pradesh and Jharkhand.
