For the first time after independence, private gold mine is going to be started on a large scale in Andhra Pradesh. Jonnagiri project in Kurnool district is going to be commissioned in the beginning of May. It is being developed by Geomysore Services India Pvt Ltd. It is believed that this can gradually reduce India's dependence on gold imports.
Import more than 800 tons of gold every year
India imports more than 800 tonnes of gold every year, which puts pressure on foreign exchange reserves. Gold production in the country is very low. Hutti Gold Mines produces only about 1.5 tonnes annually. After the closure of Kolar Gold Fields in 2000, large-scale mining almost ended.
400 crore investment, big goals
Jonnagiri project is spread over 598 hectares and an investment of more than ₹ 400 crore has been made in it. Andhra Pradesh Chief Minister Chandrababu Naidu can dedicate it to the country. This project is starting with a gold reserve of 13.1 tonnes, which is likely to be further expanded to 42.5 tonnes. At peak capacity it can produce about 1,000 kg of gold every year.
Investment and employment will get a boost
Experts believe that this project will attract new investment in the gold mining sector. This can boost the production of gold and other essential minerals in India. Besides, work is also being done on facilities like education, health, water and skill development at the local level.
Imports will not decrease immediately, but the direction will change
According to experts, this will not immediately reduce the import of gold, but it is definitely a big change. India is now gradually moving towards increasing the use of its resources.
Slight softening in demand, investors' interest remains intact
According to the World Gold Council, the demand for gold remained slightly weak in the beginning of March, due to seasonal factors and price fluctuations. Nevertheless, jewelery sales remained strong during the wedding season and companies saw an increase of 32% to 124% in their earnings.
Money is continuously coming into Gold ETF
Investments worth ₹22.7 billion came into Gold ETFs in March, which was the 11th consecutive month. The total holding reached 115 tonnes. Investments also increased in the beginning of April, which clearly shows that investor confidence still remains strong.
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