CM Chandrababu Launches Gold Mining Project in Kurnool's Jonnagiri
Synopsis
Key Takeaways
The Chief Minister's Office of Andhra Pradesh announced on Wednesday, 24 June 2026 that Chief Minister Nara Chandrababu Naidu inaugurated the Jonnagiri Gold Mining Project in Kurnool district, marking the formal launch of commercial gold extraction operations at one of the state's most prominent mineral sites.
Context
At the inauguration, CM Naidu flagged off heavy vehicles tasked with transporting ore-bearing earth from the mine site, signalling the commencement of active extraction. He also visited a simulator training centre established at the site where women and youth are being trained to operate heavy mining vehicles — a skills initiative embedded within the project's launch framework.
GeoMysore Services and Deccan Gold Mines are jointly executing the project with a combined investment of Rs 405 crore. The two firms will carry out gold mining operations at Jonnagiri, a village in Kurnool district long identified for its gold-bearing geology.
Policy Backdrop
The Geological Survey of India confirmed gold reserves at Jonnagiri and nearby sites through exploration work conducted in the 2000s. Andhra Pradesh governments have since the early 2010s issued mining leases and invited private sector participation to monetise these deposits through public-private partnerships.
Deccan Gold Mines is among India's established gold exploration firms with a footprint across southern India, while GeoMysore Services is partnering in the extraction operations. The project fits the state's broader strategy of reactivating dormant mineral prospects under updated national mineral policies to generate employment and state revenue.
Production Plan and Scale
According to the Chief Minister's Office, the project is planned in phases: output will begin at 400 kg of gold per year, scale to 900 kg per year in a subsequent phase, and eventually reach 2 tonnes per year at full capacity. This phased ramp-up is designed to allow operational and regulatory consolidation at each stage before expansion.
The pairing of a heavy-equipment simulator centre with the mine launch underscores the state government's intent to generate local employment, particularly for women and youth in Kurnool district, alongside the commercial extraction activity.
Stakeholders and Impact
Ministers Kollu Ravindra, Nimmala Rama Naidu, and TG Bharat attended the inauguration ceremony alongside other officials. Their presence signals the political weight the state government is placing on the project as a marker of its industrial investment drive.
Local communities in and around Jonnagiri stand to benefit from direct employment in mining operations and from the skills training infrastructure. The project is positioned under the state's 'Choose Speed, Choose AP' investment promotion narrative, which has been used to brand large-ticket industrial launches.
What's Next
The immediate milestone will be sustaining the initial annual output of 400 kg before seeking regulatory clearances for the expansion phases targeting 900 kg and eventually 2 tonnes of gold per year. Environmental clearances and potential lease extensions for later production stages will be closely watched by industry observers and local stakeholders alike. The success of the simulator-based training programme for women and youth could also serve as a template for skill integration in future mining projects across the state.