AP CM Naidu to Inaugurate Rs. 405-Cr Gold Mining Project at Jonnagiri on June 24
Amaravati, June 23 (TNT): Andhra Pradesh Chief Minister N. Chandrababu Naidu will inaugurate the first unit of the Jonnagiri Gold Mining Project at Jonnagiri village in Tuggali mandal of Kurnool district on Wednesday.
The Chief Minister will also lay the foundation stone for the second unit of the Geo Mysore plant during the visit.
The gold mining and processing project has been established with an investment of ₹405 crore by Geo Mysore Services India Private Limited and Deccan Gold Mines Limited.
Trial runs at the mine and processing facilities have already been completed and commercial production is set to commence following the inauguration.
The Jonnagiri project is being billed as the country’s largest private-sector gold mining venture and is expected to place Andhra Pradesh prominently on India’s gold mining map, which has traditionally been dominated by Karnataka’s Kolar Gold Fields.
The State Government has allotted 1,500 acres for the project, with mining operations commencing on 600 acres in the first phase.
Processing facilities have already been established and the project will be expanded to the remaining area during the second phase.
According to project estimates, the plant is expected to produce around 400 kilograms of gold during its first year of operations.
Production is projected to increase to 900 kilograms from the second year and gradually scale up to nearly two tonnes annually as processing capacity expands.
The project is expected to generate employment for around 700 people.
Officials said the State Government will receive a royalty of four per cent on the value of gold produced.
Based on current projections, the government is expected to earn around ₹57 crore in royalty from the production of 400 kilograms of gold and approximately ₹144 crore from 900 kilograms of output.
During the visit, the Chief Minister will also address a public meeting at Jonnagiri and later interact with Telugu Desam Party leaders and workers from the Pattikonda Assembly constituency.
TNT KM
