Andhra Pradesh targets 4 tonnes annual gold output

Andhra Pradesh plans to ramp up gold production to 3-4 tonnes annually within three to four years, state Mines Secretary Mukesh Kumar Meena told livemint.com. The state launched India's first private gold mining project at Swarnagiri in Kurnool district in June, operated by Geomysore Services India at a cost of Rs 405 crore. The 1,500-acre site holds an estimated 50 tonnes of gold resources.

The state expects to produce 1,000 kg of gold from Swarnagiri next year, saving $140 million in foreign exchange and earning Rs 100 crore in royalty for the state, Meena said. Six more gold blocks will be auctioned this year for composite licences. Beyond gold, Andhra has identified 16 critical minerals along its 1,060-km coastline, including rare earths and beach-sand minerals. Meena said the state aims to produce 7 lakh tonnes of ilmenite by 2029-30 to meet 100 per cent of India's titanium requirements, which are currently 90 per cent imported.

The mineral sector is expected to generate 40,000 jobs from beach-sand mining and processing, Meena said. Swarnagiri currently employs 800 people, which could rise to 2,000. The state has been designated one of India's three Rare Earth Corridors in the Union budget and has drawn a roadmap to attract nearly Rs 50,000 crore in investments.