The stage is set for gold mining and processing by the first private plant, from Jonnagiri area in Kurnool district in Andhra Pradesh as the state govt has decided to conduct a public hearing on Feb 18.

The Geomysore and Deccan Goldmines Limited, which launched its pilot project almost two years ago, finally decided to go for the commercial operations from the plant.

The project is likely to start producing gold within three months after securing the final environmental clearance after the public hearing. The firm aims to produce at least 750 kgs gold per year from the area.

The Geological Survey of India (GSI) first found gold reserve in Kurnool district way back in 1994 and invited private firms to take up exploration operations.

However, no company came forward due to the massive investment required even to complete the preliminary studies. The Centre liberalized the mining lease process with open licencing policy in 2005 and once again launched search for the private developers including foreign investments.

The Bangalore-based Geomysore Services Limited headed by geophysicist Dr Modali Hanuma Prasad secured preliminary licence to launch trials for exploration of gold in Jonnagiri mandal in 2013. It took one decade for the firm to get all clearances even for the pilot project.

Firm started gold mining trials in 2021 | page 6
Subsequently, Deccan Gold Mines Limited (DGML) acquired about 40 percent stake in Geomysore putting the process of exploration on the fast track. The firm took about 1,500 acres on lease and purchased about 750 acres in Tuggali and Maddikera mandals and kick-started the trials in 2021. The firm set up a small processing unit and started exploration operations for the pilot project.

"We have conducted trials with about 30,000 borewells in the area and secured some deposits during the preliminary exploration. After two years of field explorations, we found lab reports very positive to go for the commercial operations," said Prasad, who is also the managing director of Geomysore.

Although, the firm wanted to launch the commercial operations by Dec, 2024, it got delayed due to pending lab reports. Sources said that firm had set up large-scale processing machines by investing around Rs 320 crore in Jonnagiri. "We are planning to go for actual exploration through open cast mining after the completion of public hearing," said Hanuma Prasad.

The firm is expected to continue the mining operations for about 25 years.

Courtesy: TOI