Vijayawada: Andhra Pradesh on Wednesday began producing gold after bringing back to life the gold mine that had been inactive for over two millennia, with the launch of India’s first private gold mining project at Jonnagiri village in Kurnool district.The mine, which is one of the oldest gold mines in the world, is known to have produced gold during the period of Emperor Ashoka in 3rd century BCE. It has now got a new lease of life and is set to contribute one-fifth of the country’s total indigenous gold production. The AP govt has renamed Jonnagiri as ‘Swarnagiri’, as the dusty village was famous by its original name Suvarnagiri or Swarnagiri (mount of gold).Chief minister N Chandrababu Naidu inaugurated the gold production unit of Geomysore Services and Triveni Earthmovers, which will produce about 400 kg of gold annually. He also launched the work on the second phase of the project, which once completed will produce about two tonnes of gold annually.With its official launch, Jonnagiri mine has broken the monopoly of Hutti gold mines, a govt-owned unit in Raichur district of neighbouring Karnataka. Both Hutti and Jonnagiri gold mines were famous during the Mauryan empire. At present, Hutti produces 99 percent of India’s local gold production. Jonnagiri will now contribute about 20 percent of local gold production. Once fully operational, its share is likely to go up to 50 percent and beyond.Set at an investment of Rs 405 crore, AP govt will get a four percent royalty on the value of gold produced at the Jonnagiri project. The annual revenue to the govt from the mine at the present 400 kgs of gold production will be about ₹57 crore. The company is planning to produce around two tonnes of gold within three years.The project is India’s largest private sector gold mining venture and would play a key role in strengthening India’s domestic gold production. India currently produces around 1.5 tonnes of gold, which is hardly one percent of its total annual consumption.Addressing a gathering after launching the project, Naidu said gold production in the state will help conserve foreign exchange and provide new opportunities for local youth. “This project will become a growth engine not only for Rayalaseema but for India,” he added.Recalling the golden past of Jonnagiri and its connection with the prosperity of ancient India, the CM said the region, which was known as Suvarnagiri, was an important gold producing centre during the era of Emperor Ashoka. “The inscriptions of Mauryan period at nearby Erragudi village reveal the area’s historical significance in gold production. Rayalaseema was traditionally known as Ratnalaseema (land of precious stones), with the region’s wealth of gems gaining prominence during the Vijayanagara period. The launch of the gold mine marks a return of the region’s past glory and a new beginning for Rayalaseema’s economic revival,” Naidu said.BOXCM announces jewellery manufacturing park at JonnagiriAlong with the launch of the gold mining project, the AP govt also announced setting up of a gold jewellery manufacturing park at Jonnagiri. “Instead of sending locally produced gold elsewhere for jewellery manufacturing, the govt would establish a jewellery park near the mining project itself. With the arrival of the gold mine, the lives of the people here should also become golden,” chief minister Chandrababu Naidu said, while announcing a few measures to transform the village into a jewellery-making hub. He also assured all required permissions and security support to promote the industry in the area.
