Important information regarding the reserves of gold has emerged. There is a possibility that Andhra Pradesh possesses 50,000 kg of gold in its territory. An important official of the state government revealed on Thursday that indications of significant amounts of gold in many areas of the state including Kurnool district have been discovered.

According to the above estimates, India can become independent in its gold imports and Andhra Pradesh can emerge as an important source of supply.

Mukesh Kumar Meena, principal secretary of the Mining Department, stated during a press briefing that a total of 50 tons of gold might be available at Jonnagiri village located in Kurnool district. Besides, four more villages Ramagiri, Javvakula, Chigurukunta, and Bisnatham have been marked as sites for gold mining.

He further revealed that according to the figures, in the coming years Andhra Pradesh can emerge as the largest supplier of gold in the country.

Meena noted that commercial-scale gold production has already begun in Jonnagiri. About ten years ago, approximately 1,500 acres of land were allocated for gold mining in the area; however, exploration and survey work has so far been conducted on only 500 acres.

Based on surveys conducted to date, the area is estimated to hold around 13 tonnes of gold. Exploration work has not yet commenced on the remaining 1,000 acres. Officials believe that once the investigation of the entire area is complete, the total gold reserve in Jonnagiri could reach up to 50 tonnes. The official stated that gold mining is a capital-intensive and technically complex industry. For this reason, the government has decided to entrust mining operations to private companies through a tendering process.

He also noted that the gold recovery rate has declined significantly over time. Previously, approximately 3 grams of gold could be extracted from one tonne of mineral ore, whereas now, this yield has dropped to around 1 gram per tonne.

According to Meena, mining projects cease to be economically viable if the recovery rate falls below 0.8 grams per tonne.

He further mentioned that Chief Minister N. Chandrababu Naidu might formally inaugurate the Jonnagiri gold mining project towards the end of this month.