Andhra Pradesh charts a course from mineral extraction to value-added manufacturing

Andhra Pradesh is repositioning its mineral wealth as the foundation for a broader manufacturing push, aiming to move beyond the simple extraction and export of raw materials. The state's strategy, described by senior officials as a "minerals-to-manufacturing" approach, is designed to capture more economic value within its borders by processing and building industries around its natural resources.

The first tangible results of this vision are emerging at the Swarnagiri Gold Mines near Jonnagiri in Kurnool district. Operated by Geomysore Services India Pvt. Ltd., the mine has begun producing 999/24-carat gold bars, branded as 'Made in Andhra/Made in Jonnagiri'. Production started in July, and the company is expected to reach an annual output of around 1,000 kg in the coming period. The state government is already looking to expand this success, with Geomysore seeking an additional 1,000 acres for exploration and the government identifying other gold-bearing belts for auction.

Principal Secretary for Revenue (Mines), Mukesh Kumar Meena, indicated that belts in Boksampalli, Javakula, Chigurugunta, and Ramagiri in Anantapur and Chittoor districts would be auctioned shortly, with expectations of better yields. The broader ambition includes establishing gold ornament manufacturing clusters near the mines, creating an integrated chain from extraction and refining to jewellery making. This would not only generate employment but also boost state revenues through GST and royalties, while potentially reducing India's reliance on imported gold.

Beyond gold, the state is pursuing a transformative coal-gasification project proposed by Reliance Industries near Recherla and Chintalapudi in Eluru district. With an investment exceeding ₹2 lakh crore, the project would operate 600 meters underground to convert deep coal reserves into syngas. This could feed the production of hydrogen, ammonia, urea, methanol, and synthetic natural gas, laying the groundwork for a large chemicals, fertiliser, and energy hub. Officials highlight the project's potential to spawn thousands of ancillary jobs and transform the Eluru–Chintalapudi–Recherla belt into a major industrial centre.

On the coast, the Adani Group has proposed a ₹16,000 crore beach sand project in Srikakulam for titanium extraction and the manufacturing of value-added products. In the critical minerals sector, a preliminary study by the National Geophysical Research Institute (NGRI) has found traces of lithium and gallium in Tummalapalle, Kadapa district. The Mines Department has signed an MoU with NGRI and IIT Dhanbad to explore these minerals for use in lithium batteries and advanced electronic components. A proposed Centre of Excellence by IIT Dhanbad in the state would focus on research and product development in this field.

Rounding out the industrial push are two major integrated steel plants: an 8.2-million-tonne facility by ArcelorMittal Nippon Steel at Rajayyapeta near Anakapalli and a 2-million-tonne plant by JSW Steel in Kadapa. These projects, along with the ancillary industries they are expected to attract, are poised to significantly boost manufacturing, investment, and employment across Andhra Pradesh.