Preparations are being made to make Andhra Pradesh the new gold hub of India. The work on a gold mining project in Jonnagiri in Tuggali mandal of Kurnool district has been expedited. Chief Minister N himself. Chandrababu Naidu is taking moment-to-moment updates on this entire project. The Chief Minister is going to start work on this completely. It is being told that the aim of this project is to reduce the country’s heavy dependence on gold imports by producing 800 to 1,000 kg of refined gold every year. In a way, this is being considered a dream project of the Naidu government.
Jonnagiri Gold Mining Project has been developed by Geomysore Services India Private Limited and is spread over 598 hectares. This is India’s first large-scale private gold mining project since independence. The government has allocated 1,500 acres of land for the Jonnagiri Gold Fields Project, of which 600 acres will be mined in the first phase. Necessary processing plants have already been set up, and the project will be extended to the rest of the area in the second phase. The government expects the plant to produce 400 kg of gold in its first year of operation, and this will increase to 900 kg in the next year.
Confirmation of 13 tons of gold
It is claimed that there are reserves of about 50 tonnes (50,000 kg) of gold in Jonnagiri village. It has been confirmed to contain 13 tonnes of gold in the 500 acres of land initially discovered. At Jonnagiri, processing of one tonne of extracted ore yields about 1 gram of pure gold (which is less than the earlier average of 3 grams). Mining requires a lot of capital.
Therefore, if the recovery rate falls below 0.8 grams per tonne, mining operations are generally no longer economically viable.
700 people will get employment
With increased processing capacity, annual production is expected to eventually reach 2 tonnes. The government claims that this project will provide employment to about 700 people. Naidu government will get 4 percent royalty on the price of gold produced. Based on current estimates, the government expects to earn royalty of approximately ₹57 crore from 400 kg gold production and approximately ₹144 crore from 900 kg gold production.
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