Andhra Pradesh To Revive Chigurugunta Gold Mines After 25 Years

Tirupati: After remaining closed for nearly 25 years, the Chigurugunta-Bisanatham gold mines in Chittoor district are set for a revival, with the state government initiating the tender process for a project that would generate jobs and boost the local economy.

Two companies participated in the tender process held on June 25. Officials are now scrutinising the bids before completing the auction.

The government is also trying to revive another major gold mining project after the launch of gold production at the Jonnagiri gold project in Kurnool district.

Following a recent survey, the proposed mining lease has been expanded from 263 hectares to 272 hectares. According to estimates prepared by the national mineral development corporation, the area holds nearly 1.8 million tonnes of gold-bearing ore.

Officials estimate that each tonne of ore could yield about 5.5 grams of gold, taking the total recoverable reserves to around 8.5 tonnes. The project is expected to create nearly 5,000 direct and indirect jobs while improving business opportunities in Chigurugunta and nearby villages.

The Chigurugunta and Bisanatham mines have a long history of gold extraction.

Mining operations started at Bisanatham in 1968 and at Chigurugunta in 1978 under Mineral Exploration and Consultancy Limited (MECL). The gold ore was supplied to Bharat Gold Mines Ltd at the Kolar goldfields in Karnataka.

BGML later took over the mines and continued the operations until January 15, 2001, when the mines were shut following heavy financial losses.

Sources said that the exploration carried out in 2011 reconfirmed the presence of gold deposits. In 2018, the NMDC had emerged as the highest bidder for the Chigurugunta-Bisanatham block, but the project remained on paper despite the award of the block.

Later in 2022, the previous YSRC government handed over the project to NMDC with a proposed investment of `50 crore, but mining activity did not commence.

The revival plan now gained momentum following the success of the Jonnagiri gold project, where commercial gold production has begun. With the bidding process under way, officials are expected to finalise the successful bidder after technical and financial evaluation.

Once the lease is awarded, the selected company will begin statutory clearances before taking up mining operations.