
Andhra Pradesh is positioning itself as a major contributor to India's gold production, with state officials projecting that it could become the country's largest supplier in the coming years, as per PTI news report.
The optimism is driven by substantial estimated reserves at Jonnagiri in Kurnool district and the identification of several other promising mining areas.
According to Andhra Pradesh Principal Secretary (Mines) Mukesh Kumar Meena, Jonnagiri is estimated to contain around 50 tonnes of gold.
Commercial production has already commenced, and Andhra Pradesh Chief Minister N. Chandrababu Naidu is scheduled to officially launch the Jonnagiri gold mining project later this month.
About 1,500 acres were allotted for mining at Jonnagiri nearly a decade ago. Exploration has so far covered 500 acres, where up to 13 tonnes of gold have been estimated.
The remaining 1,000 acres are yet to be explored, with officials projecting total reserves of around 50 tonnes.
Beyond Jonnagiri, the state has identified Ramagiri, Javvakula, Chigurukunta and Bisnatam as potential locations for future gold mining activities.
According to Mukesh Kumar Meena, gold extraction requires significant capital investment and specialised expertise, which is why the government has opted to award mining rights to private players through a tender process.
He also noted that recovery rates have declined over time. Processing 1 tonne of mined material now yields only 1 gram of gold, compared with 3 grams previously, while yields below 0.8 grams per tonne are considered uneconomical.
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The state estimates 50 tonnes of gold reserves at Jonnagiri, has commercial production underway, and plans further exploration across the remaining mining area while advancing prospects at 4 additional identified locations.
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Published on: Jun 19, 2026, 12:03 PM IST

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