India’s First Private Gold Mine: Jonnagiri Project
Background
India, the world’s second-largest consumer of gold, imports about 1,000 tonnes annually, making gold its second-largest import after oil.
Domestic production is negligible at about 1.5 tonnes per year.
To address this gap, India is set to witness its first large private-sector gold mine at Jonnagiri, Andhra Pradesh.
The Jonnagiri Gold Mine
Location: Near Jonnagiri, Erragudi, and Pagadirayi villages in Tuggali Mandalam, Kurnool district, Andhra Pradesh.
Developer: Geomysore Services India Ltd, supported by Deccan Gold Mines Ltd (DGML), the only listed gold exploration company on BSE.
Clearances: Received environmental approval in June–July 2025; state-level clearances are under process.
Production Estimates
Initial Output: ~ 750 kilograms of gold per annum.
Scale-up Potential: Expected to rise significantly, with projections of 1 tonne (1,000 kg) annually within 2–3 years.
Impact: Adds almost one extra tonne to India’s output, reducing heavy import dependency.
Strategic Importance
Self-Reliance in Gold: Marks the beginning of private-sector participation in India’s mining industry.
Economic Impact: Strengthens domestic supply, lowers pressure on imports, and boosts local economy of Andhra Pradesh.
Sectoral Significance: A landmark for private investment in non-coal mining, encouraging further mineral exploration.
By States, largest resources in terms of gold ore (primary) are located in Bihar (43%) followed by Rajasthan (24.92%), Karnataka (20%),West Bengal (2.47%) & Andhra Pradesh (3.03%) and Jharkhand (2%).
The remaining 5.22% resources of ore are located in Chhattisgarh, Madhya Pradesh, Kerala, Maharashtra and Tamil Nadu.Although, Bihar is the leading State in India as far as resources of gold ore are concerned
In terms of metal content, Karnataka remained on top followed by Rajasthan, Andhra Pradesh, Bihar, Jharkhand
Presently, HGML is the only Public Sector Company producing gold in the country. HGML operates mines at Hutti and HiraBuddini in Raichur district, Karnataka.
About Deccan Gold Mines Ltd (DGML)
Founded: 2003.
Specialization: Gold exploration and mining, with assets across India, Kyrgyzstan, Finland, and Tanzania.
Role in Jonnagiri: Stakeholder in Geomysore Services, pioneering India’s first private gold production venture.
The Jonnagiri gold mine is not just a mining project but a milestone in India’s resource self-sufficiency. By producing 750 kg annually, with prospects of expansion, it lays the foundation for private participation in India’s mineral sector. This development could gradually ease India’s dependence on costly gold imports, while opening opportunities for Andhra Pradesh as a mineral hub.
MAJOR GOLD MINES IN INDIA
The production of primary gold at 1251 kg in 2021-22 registered an increase of about 10.99% compared to the previous year.
Karnataka was the leading producer of gold, accounting for 99.07% of the total production.
Hutti is the biggest gold mine in India, in Karnataka, with 16.38 million metric tons of gold reserves.
Major Mines
Hutti Gold Mines, Raichur District (Karnataka)
Kolar Gold Mines, Kolar District (Karnataka)
Ramagiri Gold Mine, Anantapur District (Andhra Pradesh)
Jonnagiri Gold Mine, Kurnool District (Andhra Pradesh)
Kundru Gold Mines, East Singhbhum (Jharkhand)
Lava Gold Mine, Chandil, Seraikela Kharsawan (Jharkhand)
Sonbhadra Gold Mines, Sonbhadra District (Uttar Pradesh)