Andhra Pradesh’s next leap: From mineral wealth to manufacturing power

Subscribed with another email? Logout and Login with that one. Updated - August 29, 2026 12:30 pm IST - JONNAGIRI, KURNOOL The open cast mining at Swarnagiri Gold Mine of Geomysore, at Jonnagiri in Kurnool district of Andhra Pradesh, on August 29, 2026.

| Photo Credit: U. Subramanyam Andhra Pradesh is looking beyond mining. The State is seeking to transform its abundant mineral wealth into a manufacturing opportunity, moving beyond the extraction of raw materials to create greater value within the State.

With significant reserves and deposits of gold, titanium, coal, steel, lithium, gallium and other minerals, Andhra Pradesh is positioning itself to move up the value chain. The objective, according to senior government officials, is straightforward: not merely to extract and sell what lies beneath the ground, but to process, manufacture and build industries around these resources within the State.

This emerging “minerals-to-manufacturing” strategy has already begun to take shape with the production of gold bars from the Swarnagiri Gold Mines near Jonnagiri in Kurnool district, operated by Geomysore Services India Pvt.

Ltd. The success of the Swarnagiri project is encouraging the State Government to look beyond a single mine and explore the potential of other gold-bearing regions as well. According to information available from the government, Geomysore commenced production a couple of months ago and is expected to produce around 1,000 kg of gold annually in the coming period, with the capacity likely to increase further as operations expand.

The significance of the development goes beyond the gold extracted from the mine. Gold production, bullion manufacturing and, potentially, jewellery-making clusters can create an integrated value chain within Andhra Pradesh — generating employment, supporting ancillary industries and retaining a larger share of the economic value of the mineral within the State.

With a broader industrial vision, Andhra Pradesh wants its mineral wealth to become the foundation for manufacturing, rather than simply a commodity leaving the State as raw material. Geomysore has commenced gold production from the Jonnagiri mine in July and has begun bringing the locally produced gold to the market in the form of 50-gram to 500-gram, 999/24-carat gold bars, branded as ‘Made in Andhra/Made in Jonnagiri’, featuring the Andhra Pradesh map/symbol.

The development could mark the beginning of a broader gold-based industrial ecosystem in the region. Geomysore is already operating in over 600 acres and has sought an additional 1,000 acres for exploration. The proposal currently under active consideration by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

The State Government is also identifying additional sites suitable for gold exploration. According to Principal Secretary, Revenue (Mines), Mukesh Kumar Meena, several promising gold-bearing belts are also being prepared for auction.

Mukesh Kumar Meena, Principal Secretary, Revenue (Mines) Department, Government of Andhra Pradesh, speaking to The Hindu, on August 29, 2026. | Photo Credit: K.V.S. Giri “Boksampalli, Javakula, Chigurugunta and Ramagiri belts of Anantapur and Chittoor mines will also be auctioned shortly.

And these mines will have better yield, upto 5.6 grams gold plus per tonne. The government is also planning to facilitate gold ornament manufacturing clusters close to the mines,” Mr. Meena said. The vision extends beyond mining.

Gold jewellery and ornament-manufacturing clusters located close to the mines could create an integrated value chain — from extraction and refining to bullion, jewellery manufacturing and marketing — while generating employment and supporting ancillary industries.