India’s gold story has always been about buying, gifting and importing. On June 24, 2026, Andhra Pradesh tried to add a new word to that story: mining.
Andhra Pradesh's Chief Minister N. Chandrababu Naidu inaugurated Bharat's first major private-sector gold mining project on June 24, 2026. The mine sits at Jonnagiri village in Tuggali Mandal, Kurnool district. The state cabinet renamed the village "Swarnagiri" meaning Hill of Gold to mark the occasion.
The project belongs to Geo Mysore Services India Private Limited and Deccan Gold Mines Limited. Together, they have pumped ₹405 crore into the venture.
Naidu did not just cut the ribbon. He also laid the foundation stone for a second unit at the same site. State ministers Kollu Ravindra, Nimmala Ramanaidu, and TG Bharat were present at the event.
How Big Is the Project?
As per reports, the mine spans about 598 hectares, which is roughly 1,478 acres. Active mining starts across 600 acres in its first phase. Unlike the deep underground tunnels of Kolar Gold Fields (KGF), Swarnagiri is an open-pit mine. Workers dig from the surface through large-scale excavation. This makes the process faster and cheaper in its early stages.
According to Deccan Gold Mines, the site holds an audited resource of around 8.2 million tonnes of ore. The average gold grade is 1.49 grams per tonne. That translates to nearly 12 tonnes of contained gold.
The currently planned East Lode operation has a shorter mine life, while expansion could extend the project life beyond a decade. The Andhra Pradesh government believes the broader region may hold up to 42.5 tonnes of gold though those estimates still need full verification.
How Much Gold Will It Produce?
The plant will produce 400 kg of gold in its first year. From the following year, output jumps to 900 kg. It will eventually scale up to 2 tonnes annually as processing capacity grows.
To put that in context, Kolar Gold Fields produced an estimated 800 to 900 tonnes of gold over 120 years before it shut down in 2001. Swarnagiri won't match that scale, but it signals that India is serious about reviving domestic gold production.
Also Read| Bharat is Ready to Change the Global Coal Story on June 24; Check How?
What Does the Government Earn?
The state government will receive a 4% royalty on the value of gold produced. Government revenue may also include royalty, DMF contributions and other statutory payments; the exact break-up needs official clarification. The project is expected to create around 700 jobs, giving a direct economic boost to Kurnool district.
From KGF to Swarnagiri - A Historic Shift
After KGF closed in 2001, India had just one active gold mine left the state-run Hutti Gold Mines in Karnataka. For over two decades, no private player entered the space. The risks were high, the process was long, and the policy wasn't clear.
Geomysore Services first acquired prospecting rights in the 1990s. The company applied for a mining lease in 2006. It took decades of exploration and ₹405 crore in investment to finally begin commercial production.
Policy changes helped make it happen. Reforms in 2015 made mineral block auctions more transparent. A 2021 amendment let private explorers who discover mineral deposits retain mining rights and sell the extracted resources commercially. Swarnagiri is one of the first big projects to benefit from these rules.
Also Read| PM Modi Releases ₹2,400 Crore Under PM-VBRY: Who Gets The Money And Why It Matters
Why This Matters
India is the world's second-largest consumer of gold. Yet it produces very little domestically. Most gold comes through imports, which puts pressure on the country's trade balance and foreign exchange reserves.
A thriving private gold mining sector can reduce that dependence. Swarnagiri is a small but significant step in that direction. If the project succeeds, it could open the door for more private players to enter the sector and unlock India's vast, largely untapped mineral wealth.
The Andhra Pradesh government is betting big on it. The state compares the Swarnagiri story to that of KGF a legacy that once made Karnataka famous across the world.
News4Bharat POV
Swarnagiri is not big enough to change India’s gold import dependence immediately. Its real importance is that it tests whether India can build a transparent, responsible and locally beneficial private mining model.
India imports hundreds of tonnes of gold annually, while this mine may produce around 400 kg in the first year, rise to nearly 900 kg, and possibly scale further later. That is tiny compared with India’s total demand. So the better question is not “Will this end imports?” It is: Can this become a template for private exploration, local employment, royalty transparency, environmental oversight and mineral self-reliance?