50 Tonnes Of Gold Found! This Indian State Is Sitting On A Fortune

Published 19 June 2026 · india

50 Tonnes Of Gold Found! This Indian State Is Sitting On A Fortune Written By, Last Updated: June 19, 2026, 19:42 IST While the economic

50 Tonnes Of Gold Found! This Indian State Is Sitting On A Fortune Written By, Last Updated: June 19, 2026, 19:42 IST While the economic potential is immense, officials emphasise that modern gold extraction requires substantial capital and specialised technical expertise Andhra Pradesh has successfully operationalised the Jonnagiri gold project, establishing it as the country’s first large-scale private gold mining venture since Independence. Representational image/AP Andhra Pradesh is positioned to emerge as the largest supplier of gold in the country over the coming years, driven by substantial mineral wealth discoveries and a major push into private sector mining. State authorities have confirmed that the optimisation of local resources could soon reshape India’s domestic mining landscape, which has historically faced a deep reliance on international imports to meet its massive consumer demand. The projection relies heavily on estimated reserves of 50 tonnes of gold located at a single site in Jonnagiri village, situated within the Kurnool district. Mukesh Kumar Meena, Principal Secretary for Mines and Geology, announced the strategic outlook during a press conference detailing the state’s expanding mineral inventory.

Beyond the flagship Jonnagiri operations, the government has identified four additional highly prospective areas for gold mining across the state, including Ramagiri, Javvakula, and Chigurukunta-Bisnatam, signalling a broader infrastructure campaign to map out and lease untapped critical mineral blocks. Private Investment Revives Post-KGF Domestic Production The development marks a significant structural shift for India’s domestic gold production, which has remained severely constrained since the closure of the iconic Kolar Gold Fields in Karnataka back in 2000. For over two decades, the state-run Hutti Gold Mines, also in Karnataka, has remained the nation’s sole major active producer, yielding a modest 1.5 tonnes annually. In contrast, India consumes more than 800 tonnes of gold each year, creating sustained pressure on foreign exchange reserves and highlighting the strategic necessity of domestic exploration. To bridge this gap, Andhra Pradesh has successfully operationalised the Jonnagiri gold project, establishing it as the country’s first large-scale private gold mining venture since Independence. Developed by Geomysore Services India Private Limited with over 400 crore rupees in investment, the open-pit mine spans nearly 598 hectares.

At peak operating capacity, the facility is projected to produce up to 1,000 kilograms of refined gold annually over the next 15 years, offering an essential buffer to the national supply chain. Advanced Technology Deployed for Lower-Grade Extraction While the economic potential is immense, officials emphasise that modern gold extraction requires substantial capital and specialised technical expertise, prompting the state to award mining rights via transparent competitive bidding processes. This private sector involvement is critical given the geological realities of modern mining, where ore recovery rates have significantly declined over time. Processing facilities must now handle vast quantities of material to maintain profitability; currently, processing one tonne of mined rock yields approximately one gram of refined gold, compared to historical yields of three grams per tonne. Any yield dropping below 0.8 grams per tonne is generally deemed uneconomical. Through advanced crushing, carbon-in-leach processing, and modern smelting furnaces, the Jonnagiri plant is engineered to efficiently convert hard rock formations into high-purity doré bars. With large stretches of the allotted mining land still undergoing secondary exploration, the state expects its proven reserves to scale higher, anchoring Andhra Pradesh as a vital node in India’s quest for mineral self-reliance.