Andhra Pradesh’s gold rush: State eyes 4 tonnes annual output, 40,000 critical-mineral jobs, says Mines Secretary

Andhra Pradesh is positioning itself as a critical-mineral powerhouse, with plans to ramp up gold production and exploit its vast reserves of beach-sand minerals, state Mines and Geology Secretary Mukesh Kumar Meena told Mint in an interview.

The state made history in June with the launch of India’s first private gold mining project at Swarnagiri, formerly known as Jonnagiri, in Kurnool district. Chief Minister N Chandrababu Naidu inaugurated commercial operations of the gold mine, marking a significant milestone for the country’s mining sector.

Operated by Geomysore Services India Pvt. Ltd, the ₹405-crore project is expected to generate jobs and boost state revenue, with ambitious production and expansion plans.

Gold exploration apart, Andhra Pradesh has also identified commercially significant quantities of around 16 critical minerals across the Uttarandhra coastal belt and the mineral-rich ranges of Rayalaseema, Meena said.

According to the AP Economic Development Board (APEDB), 182 mines along the state’s 1,060-km coastline are believed to hold substantial rare-earth and beach-sand mineral deposits, including rutile, monazite and ilmenite. Andhra Pradesh has an estimated 211 million tonnes of heavy beach sand.

The Andhra Gold Rush

The 1,500-acre Swarnagiri gold project has a projected gold resource of around 50 tonnes, while annual refined-gold production is expected to reach 800-1,000 kg.

“In Swarnagiri, we are starting with 400-500 kg per annum, but we have other areas also which we are acquiring for them. At least 1,500 acres have been given to them in Swarnagiri,” Meena said.

“We expect production of 1,000 kg or one tonne from next year. One tonne of gold saves $140 million in foreign exchange. The state government itself will get ₹100 crore in royalty,” he said.

Exploration is also underway in other areas. The Chikurgunta-Bisanatham gold block in Chittoor district is ready for a mining lease and has an estimated 16-17 tonnes of gold resources, Meena said.

“This year, we will auction composite licences for six more gold blocks, taking the total to seven. Over the next two to three years, mining is expected to begin in these areas,” he said.

Swarnagiri is expected to produce 1,000 kg of gold annually by next year and more than 2,000 kg within two years as exploration expands. Chigurgunta-Bisanatham could add another one tonne annually within three years.

“Overall, we expect 3-4 tonnes of annual gold production within the next three to four years,” Meena said.

Beach-sand minerals

Andhra Pradesh also has significant potential in beach-sand mineral exploration, particularly in Visakhapatnam and Srikakulam districts, where the state has deposits of titanium-bearing minerals such as monazite, rutile and ilmenite.

The state accounts for roughly 25 per cent of India’s coastal beach-sand mineral wealth, including extensive deposits of ilmenite, rutile, zircon and monazite.

“In a few years from now, Andhra has the potential to cater to 100 per cent of India’s titanium requirements. We want to make India self-sufficient in its titanium requirement,” Meena said.

Ilmenite is the primary ore used to produce titanium dioxide pigment, which is widely used in paints, plastics and paper.

At present, around 90% of India’s titanium pigment requirement is imported. The country’s annual requirement is estimated at 4.5-5 lakh tonnes, Meena said.

“Our target is that by 2029-30, we would be able to produce 7 lakh tonnes of ilmenite and almost 40,000 tonnes of monazite. Seven lakh tonnes of ilmenite can realistically produce around 3.5-4 lakh tonnes of titanium pigment, which can meet the country’s 100% requirement,” he said.

Jobs and investment

The Andhra Pradesh government expects the mineral sector to generate significant employment.

“We are expecting that at least 40,000 jobs can be generated through beach-sand mineral mining, processing and value addition. These are preliminary numbers in our plan,” Meena said.

Gold mining, however, is relatively less labour-intensive because processing is highly mechanised. Swarnagiri currently employs around 800 people, which could rise to about 2,000 as production increases, he said.

By a rough estimate, one tonne of annual gold production could require around 1,000 workers. At five to 10 tonnes of annual production, the sector could potentially employ 5,000-10,000 people, Meena said.

Andhra Pradesh was also designated as one of India’s three Rare Earth Corridors (REC) in the Union budget in February. The state has drawn up a roadmap to attract nearly ₹50,000 crore in investments over the next decade.

As part of its broader mineral policy, the state is mapping its mineral resources. An agency has been engaged to collect, collate and integrate geological data from different sources.

“The preliminary examination has identified 120 mineral zones in Andhra Pradesh,” Meena said.