A new gold mine has started in Andhra Pradesh.
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday inaugurated gold mine and processing projects worth Rs 405 crore at Jonnagiri in Kurnool district. With this, gold production has started on commercial level in the state. The CM also laid the foundation stone for the second phase of the projects, which is being developed by Jio Mysore Services India Private Limited and Deccan Gold Mines Limited.
According to the official statement, this project opens a new chapter for Andhra Pradesh in the mining sector and is expected to contribute significantly to industrial development and employment generation. The government has allotted 1,500 acres of land for this project, out of which mining activities have started in 600 acres in the first phase. Expansion in the remaining area will be done in the upcoming phases.
Target of 400 kg in the first year
According to estimates, the project is expected to produce up to 400 kg of gold in the first year of operation. From the second year it will increase to 900 kg per year. There are plans to increase production to two tonnes per year in future. This project is likely to create employment opportunities for about 700 people. The state government will receive four percent of the value of gold produced from the mine as royalty revenue.
How much royalty will be received
Based on current estimates, Andhra Pradesh can get royalty of about Rs 57 crore on gold production of 400 kg and about Rs 144 crore if annual production is 900 kg. This project is said to be the largest gold mining project in the private sector of the country. With this, Andhra Pradesh is expected to get a new identity in the gold mining sector of the country. Till now, gold mining in India has been mainly associated with the Kolar Gold Fields of Karnataka.
