Gold Mining Kicks Off in Jonnagiri

Kurnool:Gold mining has begun at Jonnagiri in Tuggali mandal of Kurnool district, raising hopes of economic benefits to the region’s people.

Geo Mysore is handling the project after it secured the required permissions. It started large-scale excavation in areas identified by the GSI as rich in gold-bearing ore.

For many years, Jonnagiri and the neighbouring Pagidirai villages were known for their gold potential. Exploratory studies also confirmed the soil in the region contains measurable gold deposits.

The state government has granted mining permission across 1,477 acres, enabling Geo Mysore to establish what could become one of Andhra Pradesh’s major mineral-based industries.

According to company representatives, each tonne of mineral soil in the region is estimated to contain 1.5 to 2 grams of gold.

With production and processing under way, the company reports that it would recover around 700 grams of gold from every 1,000 tonnes of ore.

Raw ore excavation is taking place at an intensive pace, with nearly 1,000 tonnes of soil being processed per day.

Company officials say around one crore tonnes of mineral reserves have been preliminarily identified in the region. The process would continue for at least ten years.

The project is centered around the ‘Dona’ area, a historic landmark between Jonnagiri and Pagidirai villages.

Locals recall the area was mined during British rule. Remnants of an old excavation pit still remain. The company has identified this eastern block as the primary mining zone, where ore deposits extend up to 180 metres below the surface.

Geo Mysore has invested in modern machinery to handle the extraction of up to four lakh tonnes of ore annually, and process three lakh tonnes of the excavated material.

The company has obtained environmental clearance from the Centre, as well as the consent to operate (CTO) from the state pollution control noard.

Beyond the mining activity, the project is expected to generate important financial and social benefits for the region.

According to preliminary plans, around 300 local youths would secure direct employment. Many others may benefit from indirect economic activities such as transportation, services, supply operations and trade. The government is also expected to receive income through taxes and other statutory payments.

Local farmers in the project area have leased out nearly 1,500 acres to the company. In 2017-18, they were paid Rs 15,000 per acre on annual lease compensation, and this was increased to `16,500 per acre the following year.

In addition, Geo Mysore has decided to permanently purchase around 350 acres for industrial use at a fixed value of Rs 12 lakh per acre. Drilling for ore is expected to take place on only 60 acres, limiting direct field disturbance.

GSI’s findings in Aspari mandal, shared with the mining officials in Nandyal district, indicate a promising future for gold mining in the region.

Such observations align with the ongoing gold mining activities in Tuggali mandal of Kurnool district. However, officials say a comprehensive survey is still required to determine the volume, quality and extent of the gold reserves.