Gold Mining Kicks Off in Jonnagiri
Kurnool: The start of gold mining at Jonnagiri in Tuggali mandal of Kurnool district raises hopes of economic benefits for the people of the region.
Geo Mysore is managing the project after obtaining necessary permissions. Large-scale excavations have begun in areas identified by GSI as rich in gold-bearing ore.
For many years, Jonnagiri and neighboring Pagidirai villages were known for their gold potential. Exploration work also confirmed that the soil in the area contains measurable gold deposits.
The state government has granted mining permission on 1,477 acres of land, enabling Geo Mysore to set up an industry that could become one of the major mineral-based industries of Andhra Pradesh.
According to company representatives, it is estimated that each ton of mineral soil in the region contains between 1.5 and 2 grams of gold.
As production and processing continues, the company stated that it will obtain approximately 700 grams of gold from every 1,000 tons of ore.
Raw ore excavations are carried out at an intense pace and approximately 1,000 tons of soil are processed per day.
Company officials say that approximately one billion tons of mineral reserves have been identified in the region as a preliminary preparation. The process will continue for at least ten years.
The project centers around the ‘Dona’ area, a historical landmark between Jonnagiri and Pagidirai villages.
Locals remember that the area was mined during British rule. Remnants of an old excavation pit still remain. The company has identified this eastern block, where ore deposits extend up to 180 meters below the surface, as its primary mining region.
Geo Mysore has invested in modern machinery to extract up to four lakh tonnes of ore and process three lakh tonnes of excavated material annually.
The company has received environmental clearance from the Center as well as permit to operate (CTO) from the state pollution check post.
The project is expected to provide significant financial and social benefits to the region beyond the mining activity.
According to preliminary plans, approximately 300 local youth will be directly employed. Others may benefit from indirect economic activities such as transportation, services, supply operations and trade. The government is also expected to generate revenue through taxes and other legal dues.
Local farmers in the project area leased approximately 1,500 decares of land to the company. In 2017-18, Rs 15,000 per acre was paid as annual rental compensation and this was increased to Rs 16,500 per acre the following year.
In addition, Geo Mysore has decided to permanently acquire around 350 acres for industrial use at a fixed value of Rs 12 lakh per acre. Ore drilling is expected to take place on only 60 acres, limiting direct site disturbance.
GSI’s findings in Aspari mandal, which it shared with mining officials in Nandyal district, point to a promising future for gold mining in the region.
Such observations are consistent with ongoing gold mining activities in Tuggali mandal of Kurnool district. But officials say a comprehensive survey is still needed to determine the volume, quality and extent of gold reserves.
