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CHAPTER 10
MINERAL RESOURCES
Table 10.1
Mineral Reserves in Orissa and India, 2004-05
(in million tonne)
Sl. Name of the Mineral / Ore Reserve in Orissa Reserve in India Percentage to
No. all India reserve
1 2 3 4 5
1 Iron ore 4177 12317.3 33.91
2 Chromite 111 114 97.37
3 Coal 60983.3 221005.9 27.59
4 Bauxite 1530 3076 49.74
5 Lime stone 2224 169941 1.31
6 Dolomite 882 7349 12.0
7 Fire clay 177 706 25.07
8 China clay 314 2353 13.34
9 Nickel ore 174.5 183.5 95.10
10 Vanadiferous magnetite 2.5 12.0 20.83
11 Manganese 116 406.2 28.56
12 Mineral sand 86 266 32.33
13 Graphite 4.6 6.0 76.67
14 Pyrophylite 4.8 22.6 21.24
15 Lead Ore 1.9 176 1.08
16 Talc – Soap stone 1.1 327 0.34
Table 10.2
Mineral Reserves and Rate of Exploitation of Important Minerals in Orissa
from 2001-02 to 2004-05
(in million tonne)
10.03 Total production of minerals 2004-05 was 1270.48 lakh tonnes valued
in Orissa with respective values from the at Rs.6148.61 crore, as against the
year 2000-01 to 2004-05 is presented in production of 1080.00 lakh tonnes valued
table 10.3. The total production of at Rs.3877.75 crore in 2003-04,
minerals and ores in the State during
Percentage Percentage
Sl. Year Production Value
increase over increase over
No. (in lakh tonne) previous year (Rs. in crore) previous year
1 2 3 4 5 6
1 2000-01 689.24 6.88 2776.15 6.57
2 2001-02 749.81 8.79 2910.47 4.84
3 2002-03 873.62 16.51 3694.17 26.93
4 2003-04 1080.00 23.62 3877.75 4.97
5 2004-05(P) 1270.48 17.64 6148.61 58.56
P : Provisional
Source: Directorate of Mines, Orissa, Bhubaneswar
10.04 Table 10.4 below represents 2004-05 over 2003-04. The production of
the picture of mineral-wise production in coal and metallic minerals has increased
the State from 2001-02 to 2004-05. by 11.00% and 27.78% respectively and
Production of minerals and ores in the in case of non-metallic minerals it has
State has increased by 17.64% during increased by 8.18% during this period.
Table 10.4
Production of Minerals (lakh tonne)
Sl.no Mineral/ 2001-02 2002-03 2003-04 2004-05(P)
Ore
1 2 3 4 5 6
478.0 520.3 602.0 668.2
1 Fuel (Coal)
(6.67) (8.85) (15.70) (11.00)
227.2 311.1 434.1 554.7
2 Metallic
(14.69) (36.93) (39.54) (27.78)
Non- 44.6 42.2 44.01 47.6
3
Metallic (3.72) (-5.38) (4.27) (8.18)
749.8 873.6 1080.01 1270.5
Total
(8.79) (16.51) (23.95) (17.64)
P: Provisional
Source: Directorate of Mines, Orissa, Bhubaneswar
N.B: - Fig. in bracket indicate percentage change over previous year.
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10.05 Table 10.5 represents the i.e. petrol and diesel etc. The percentage
value of fuel, metallic and non-metallic share of the value of metallic minerals
minerals produced in Orissa as well as produced in Orissa to India is highest i.e.
India. The value of minerals and ores 39.31 and it was 8.41 in case of non-
produced in the State during 2004-05 was metallic minerals. Inside the State, the
Rs.6148.61 crore constituting 10.21% of percentage share of the value of mineral
the total value of production in the produced during 2004-05, was highest at
Country. In case of fuel production, in 52.30 for coal followed by 44.77 and
Orissa, coal is the only fuel mineral but in 2.93 for metallic and non-metallic minerals
the country it includes other liquid fuels, respectively.
Table 10.5
Value of Minerals Produced in Orissa and India
(Rs. in crore)
Sl. Type of mineral ORISSA INDIA
No.
2002-03 2003-04 2004-05(P) 2002-03 2003-04 2004-05(P)
1 2 3 4 5 6 7 8
1 Fuel (Coal) 2070.82 2897.30 3215.61 45407.25 54818.29 51092.36
P: Provisional
Source: Directorate of Mines, Orissa, Bhubaneswar
Regional Controller of Mines, Bhubaneswar
10.06 The Iron ore exploration manganese 116 million tonne. While
work was undertaken in Sundargarh chromite is mostly available in Jajpur,
district on behalf of Kudremukh Iron Ore Dhenkanal and Keonjhar districts,
Company Ltd. The work involved was 21 manganese deposits are available in
sq.km. of geological mapping and 506m of Sundargarh and Keonjhar districts.
drilling with generation of 166 samples for Dolomite is available plentily only in the
analysis. Iron ore is abundantly available in district of Sundargarh. Koraput is the
the districts of Mayurbhanj, Sundargarh, major bauxite-bearing district in Orissa and
Keonjhar and Jajpur. As assessed upto produces 98.82% of the State’s total
2004-05, total reserve of iron ore in the production.
State is 4177 million tonne. Similarly, the
total reserve of chromite ore in Orissa is of 10.07 There are two major coal
the order of 111 million tonne and bearing areas in the State which are
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CHAPTER 10 MINERAL RESOURCES
currently being exploited, namely Talcher exploited during 2004-05. Table 10.6
and the Ib Valley. The total reserve of coal shows district wise figures of quantity and
in the State is estimated to be 60,983 value of major minerals exploited in Orissa
million tonne out of which 668.1 lakh during 2004-05.
tonne valued at Rs.3215.61 crore was
Table 10.6
1 2 3 4 5 6 7 8 9 10 11 12
TOTAL 34.23 502.20 668.14 2283.76 460.63 1923.43 10.72 178.61 49.12 130.66
10.08 From the above tabular (16.04%). Iron ore has been largely
analysis it is clear that about 97.43% of exploited in Keonjhar district (79.88%)
chromite has been mined from Jajpur followed by Sundargarh (16.95%), Jajpur
district and the balance of 2.57% from (2.39%) and Mayurbhanj (0.78%).
Keonjhar and Dhenkanal districts. Coal has Besides, 98.78% of bauxite has been
been exploited to the extent of 66.69% in exploited from Koraput district followed by
Angul district followed by 33.31% in 1.22% from Sundargarh district during
Jharsuguda, Sundargarh and Sambalpur 2004-05
districts taken together. Manganese ore
has been largely exploited in Keonjhar
district (83.96%) followed by Sundargarh REVENUE RECEIPT FROM MINERAL
RESOURCES
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CHAPTER 10 MINERAL RESOURCES
important source of revenue for a state revenue from minerals has been increasing
like Orissa. Mining revenue and cess steadily. The mining sector is an important
collected during the year 2004-05 stood source of revenue for the State, but its
at Rs.670.51 crore as against Rs.550.77 proportion to the total own non-tax
Table 10.7
Revenue Receipt from Mining Sector and Total Own Non-Tax Revenue of Orissa
(Rs. in crore)
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CHAPTER 10 MINERAL RESOURCES
the export of iron ore the total volume of than doubled.
exports during 2004-05 also was more
Table 10.8
Export of Minerals / Ores from Orissa
(Quantity – in lakh tonne)
(Value – Rs. in crore)
2 Iron Ore 28.25 222.88 35.46 272.33 46.55 374.28 61.93 852.43 156.75 NA
3 Ilminite 1.30 45.09 0.31 10.75* 0.30 0.52* 2.74 56.08 3.07 NA
Total 36.63 453.82 46.04 538.79 58.67 642.20 76.40 1186.53 171.67 NA
P: - Provisional
Source: Directorate of Mines, Orissa, Bhubaneswar
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10.12 With opening up of the set up mega steel projects of 6 MTPA and
economy and liberalization policies the 5 MTPA respectively with a proposed
mineral resources have now drawn world investment of about Rs.27,902 crore.
wide attention for large scale mining and Besides Neelachal Ispat Nigam Ltd. (NINL),
setting up of mineral based industries in which has been promoted as a joint sector
the State specially in the iron and steel project of IPICOL, Government of Orissa,
sector. In view of growing world wide MMTC and MECON has started
demand for steel, there has been a major commercial production of pig iron from
surge of interest in this sector. As Orissa 1.1 MTPA blast furnace since 2002. The
possesses a total reserve of 4177 million Sinter Plant of NINL has been
tonne of high-grade iron ore which is commissioned during March 2004, which
33.91% of the country’s deposit, the steel will make production of Pig iron more
makers of national and international repute profitable. The associated project of
have shown interest to establish steel Konark Met Coke Ltd. (KMCL) set up at
plants in the State. Government of Orissa Duburi Industrial Complex made steady
have already signed 43 Memoranda of progress for production of coke, which will
Understanding (MOU) / agreement with make it one of the unique project of its
private parties desirous of setting up steel kind in the country at a time when country
plants with an investment of is facing acute shortage of coke.
Rs.1,37,156.00. crore to produce about
58 MTPA steel . 10.15 Orissa is rich in bauxite
deposits with a reserve of 1,530 million
10.13 A reputed and well
tonne which is 49.74.% of the country’s
established foreign company viz M/S
deposit. The State Government have
Pohang Steel Company (POSCO), South
decided in principle, to lease the bauxite
Korea, which is one of the largest
mines to the prospective entrepreneurs
producers of steel in the world, has
through Orissa Mining Corporation with
evinced keen interest for setting up a
the condition that they will set up Alumina
mega steel project having a capacity of 12
/ Aluminium industries in the State. The
MTPA with an investment of US $ 12
OMC has entered into an agreement with
billion approximately.
M/s Utkal Alumina Ltd. to set up an
Alumina Project in Rayagada district.
10.14 In addition to above,M/S
10.16 Geological investigations
TATA Iron and Steel Co. Ltd. and M/S
were taken up in Bolangir and Subarnpur
Sterlite Iron and Steel Co. Ltd. have
districts for precious gemstones and
also signed MoUs with the State Govt. to
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CHAPTER 10 MINERAL RESOURCES
garnets. In course of investigation bodies. In the process, approximately one
covering 154 square kms., 24 garnet sq. km. of area was covered under
occurrence cases have been detected. The geological mapping. Trial excavation to the
State Government have formulated the tune of 50 cum has been achieved.
“Gemstone policy of 1998” for promoting Samples weighing 102 tonnes have been
exploration of gemstone resources in a collected for lab-testing for diamond
scientific and systematic manner. The incidence.
policy, inter alia, envisages steps for
EMPLOYMENT IN MINING AND
prevention of illegal trading and theft of
QUARRYING SECTOR
gemstones, opening of the gemstone
bearing areas to private sector exploitation 10.18 The mineral sector provides
and introduction of a scheme of issuing employment to a large section of the
trading licenses to parties dealing with population, ranging from unskilled to
gemstone resources. Out of 28 gemstone highly skilled jobs. Table 10.9 shows that
bearing tracts identified in the State, 18 the direct employment in major mineral
tracts have been developed so far and activities has been showing a declining
opened for re-grant of mining leases. trend. The number of workers engaged
Besides, few more gem bearing areas have directly in major mineral activities has
been located in parts of Nuapada, declined from 52,937 in 2000-01 to
Kalahandi and Bolangir districts by the 49,794 during 2004-05 showing a
Directorate of Geology. There exists a decrease of 5.94% over the period. The
good prospect for export of gems and decrease in employment is attributed in
jewellery from Orissa. part to induction of higher technology and
automation in mineral exploitation. But the
10.17 Consequent upon the finding situation during 2004-05 again revived in
of Diamond bearing Kimberlitic/Olivine comparison to the previous three
lamproite bodies in Dharambandha block consecutive years. The employment
of Nuapada district by the Directorate of situation was appreciable in 2004-05,
Geology, investigation has been extended with an increase of 13.83% over the
to the adjacent areas to locate more such previous year i.e. 2003-04.
Table 10.9
Year wise Number of Workers Directly Employed in Major Mineral Activities
P: Provisional
Source: Directorate of Mines, Orissa, Bhubaneswar.
MINING LEASES
mining leases and 25 prospecting licenses
10.19 Emphasis has been given on and 13 Reconnaissance permit for major
grant of mining leases for mineral based minerals covering 438.29 hectares,
industries for value addition so as to 1319.81 hectares and 22714 sq. kms.
generate more employment and to respectively have been granted. Besides,
promote industrialization in the State. The 17 quarry leases for decorative stones
total number of mining leases in the State over a total area of 130.52 hectares have
as on March 2005 was 594 covering an also been granted by State Government.
area of 99.08 thousand hectares. Out of
these, 331 leases covering an area of
18.43 thousand hectares were held by the (OMC Ltd.), a wholly State owned public
Orissa Mining Corporation Ltd., out of sector undertaking has been steadily
hectares. During the year 2004-05, 11 400 million tonnes of Iron ore and
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CHAPTER 10 MINERAL RESOURCES
operates 11 Iron ore mines, 5 chrome ore operating 3 leases in Kalahandi district for
mines, 3 manganese mines and 1 semi precious stone. Table 10.10 presents
Limestone mine. South Kaliapani, data relating to the total quantity and
Kaliapani, Sukrangi and underground value of different minerals / ores produced
mines of Bangur make OMC the leading and value of exports by the Orissa Mining
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