India's First Private Gold Mine Starts Operations In Andhra Pradesh: 5 Things To Know

India’s first private gold mine has begun commercial operations at Swarnagiri (erstwhile Jonnagiri) in the Kurnool District of Andhra Pradesh. The breakthrough comes at a crucial time when India is looking to reduce its dependence of gold from international sources due to the forex pressure.

India imports over 800 tonnes of gold every year, making it one of the world’s largest gold importers.

Prime Minister Narendra Modi earlier urged citizens to not to purchase gold for a year as an effort to reduce gold import burden. Moreover, Indian government hiked the custom duty on precious metal import to 15 per cent from earlier 6 per cent.

5 Key Things To Know About India’s First Private Mine:

1. The mine has a capacity to produce around 400 kg of gold

annually, with the potential to scale up to 2 tonne (1000 kg) per year in the coming years. It is set to contribute 20 per cent of local gold production, with the potential to go up to 50 per cent and beyond.

2. It is operated by Geomysore Services India Pvt. Ltd., backed by Thriveni Earthmovers and Deccan Gold Mines Ltd. The project is estimated to cost about Rs 400 crore in the area of 508 hectares.

3. The gold mine is said to have remained inactive for almost two millennia since the gold production during the reign of Emperor Ashoka in the 3rd century BCE.

4. After the operation of the Jonnagiri gold mine, the monopoly of Hutti gold mines has been broken. Hutti gold mines are a government-owned unit in Raichur district of Karnataka, which produces 99 per cent of India’s local gold production. Once Kolar gold fields were known as the largest producers of gold in India but had to shut down in 2001 after the exhaustion of the resources through relentless mining.

5. The Swarnagiri gold mining project is expected to generate employment for approximately 700 people, with nearly 80% of the workforce coming from local communities.

The Andhra Pradesh government is expecting a revenue of Rs 57 crore annually and up to Rs 144 crore once the output reaches 900 kg.

The government has announced setting up of a gold jewellery manufacturing park at Jonnagiri, aimed at transforming the village into a jewllery-making hub.