Andhra Pradesh’s gold rush: State eyes 4 tonnes annual output, 40,000 critical-mineral jobs, says Mines Secretary
Andhra Pradesh s Gold Rush: A New Era for Critical Minerals
Theindiapostdaily.com – Andhra Pradesh s gold rush is transforming the state into a critical-mineral powerhouse. State Mines and Geology Secretary Mukesh Kumar Meena revealed ambitious plans to boost gold production and exploit vast beach-sand mineral reserves. The state made history in June by launching India's first private gold mining project at Swarnagiri, formerly known as Jonnagiri, in Kurnool district. Chief Minister N Chandrababu Naidu inaugurated commercial operations, marking a significant milestone for the mining sector.
Operated by Geomysore Services India Pvt. Ltd, the ₹405-crore project aims to generate employment and boost state revenue. Beyond gold, Andhra Pradesh has identified commercially significant quantities of around 16 critical minerals across the Uttarandhra coastal belt and Rayalaseema mineral-rich ranges.
Gold Production Targets and Expansion Plans
The 1,500-acre Swarnagiri gold project boasts a projected gold resource of around 50 tonnes. Annual refined-gold production is expected to reach 800-1,000 kg. "In Swarnagiri, we are starting with 400-500 kg per annum, but we have other areas also which we are acquiring for them," Meena explained. "We expect production of 1,000 kg or one tonne from next year."
One tonne of gold saves $140 million in foreign exchange, while the state government receives ₹100 crore in royalty. Exploration continues in other areas, with the Chikurgunta-Bisanatham gold block in Chittoor district ready for a mining lease. This block holds an estimated 16-17 tonnes of gold resources.
"This year, we will auction composite licences for six more gold blocks, taking the total to seven. Over the next two to three years, mining is expected to begin in these areas."
Swarnagiri is expected to produce 1,000 kg of gold annually by next year and more than 2,000 kg within two years. Chigurgunta-Bisanatham could add another one tonne annually within three years. "Overall, we expect 3-4 tonnes of annual gold production within the next three to four years," Meena confirmed.
Beach-Sand Minerals and Job Creation
Andhra Pradesh s gold rush extends beyond precious metals. The state has significant potential in beach-sand mineral exploration, particularly in Visakhapatnam and Srikakulam districts. According to the AP Economic Development Board (APEDB), 182 mines along the state's 1,060-km coastline hold substantial rare-earth and beach-sand mineral deposits.
The state accounts for roughly 25 per cent of India's coastal beach-sand mineral wealth, including extensive deposits of ilmenite, rutile, zircon and monazite. "In a few years from now, Andhra has the potential to cater to 100 per cent of India's titanium requirements," Meena stated.
The government expects the mineral sector to generate significant employment. "We are expecting that at least 40,000 jobs can be generated through beach-sand mineral mining, processing and value addition," Meena noted. Swarnagiri currently employs around 800 people, which could rise to about 2,000 as production increases.
FAQ: Andhra Pradesh s Gold Rush
What is the projected gold production for Andhra Pradesh?
The state aims to achieve 3-4 tonnes of annual gold production within the next three to four years through multiple mining projects.
How many jobs will the mineral sector create?
At least 40,000 jobs are expected from beach-sand mineral activities, with gold mining potentially adding 5,000-10,000 positions at higher production levels.
What is Andhra Pradesh's role in titanium production?
The state targets producing 7 lakh tonnes of ilmenite by 2029-30, which can meet 100% of India's titanium pigment requirements.
How much investment is expected in the mineral sector?
Andhra Pradesh has drawn up a roadmap to attract nearly ₹50,000 crore in investments over the next decade as one of India's three Rare Earth Corridors.