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CHAPTER 10
MINERAL RESOURCES

MINERAL RESERVES about 97.37%, 95.10%, 76.67%,


49.74%, 33.91%, 28.56% and 27.59%
10.01 In the mineral map of India, Orissa respectively of the total deposit of such
occupies an important position both in minerals in India. But the value of minerals
terms of deposit and production. The produced in Orissa is only 10.21% of that
mineral deposit of the State is not only at national level in 2004-05(P). The rate of
vast but also equally diverse. It is one of exploitation to its reserve is less than 1%
the largest minerals bearing States in in all cases except in Iron ore and
India, having 16.92% of the total reserves chromite. This low rate of exploitation is
of the country. Mineral reserve of Orissa in mainly due to lack of infrastructure
respect of Chromite, Nickel ore, Graphite, facilities, low rate of investment and
Bauxite, Iron ore, Manganese and Coal is labour problems.

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

Source: Directorate of Geology, Orissa, Bhubaneswar

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MINERAL PRODUCTION AND VALUE 1% in all cases in 2004-05 except


Chromite and Iron ore. Table 10.2 shows
10.02 Though Orissa is rich in minerals,
the total mineral reserves and the rate of
exploitation does not commensurate with
exploitation of different minerals in Orissa
the potential. Enhanced rate of
for the years 2001-02 to 2004-05. It is
exploitation of different mineral reserves
seen that iron ore and chromite production
will not only improve the financial position
increased tremendously during 2004-05
of the State but also will be helpful in
over the previous year i.e. by 32.01% and
generating sizeable direct and indirect
18.75% respectively. Production of
employment. The rate of exploitation of
Manganese ore also increased by
minerals / ores in the State was less than
54.29%.

Table 10.2
Mineral Reserves and Rate of Exploitation of Important Minerals in Orissa
from 2001-02 to 2004-05
(in million tonne)

Sl Ore/ Total Exploitation during Rate of exploitation to total reserves (%)


No Mineral reserves
in 2004- 2001- 2002-03 2003-04 2004-05 2001- 2002-03 2003-04 2004-
05 02 02 05
1 2 3 4 5 6 7 8 9 10 11
1 Iron ore 4177 16.79 22.26 34.89 46.06 0.47 0.62 0.72 1.10
2 Chromite 111 1.76 3.29 2.88 3.42 0.96 1.80 1.13 3.08
3 Coal 60983 47.80 52.03 60.20 66.82 0.09 0.10 0.12 0.11
4 Bauxite 1530 3.60 4.93 4.94 4.91 0.21 0.28 0.28 0.32
5 Lime stone 2224 2.15 2.30 2.24 2.26 0.21 0.22 0.14 0.10
6 Dolomite 882 1.45 1.15 1.27 1.36 0.33 0.27 0.14 0.15
7 Fire clay 177 0.04 0.05 0.06 0.16 0.04 0.05 0.03 0.09
8 Nickel ore 175 - - - - - - - -
9 Quartz, 93 0.06 0.13 0.14 0.16 0.40 0.14 0.15 0.17
quartzite and
silica
10 Mineral sands 86 0.21 0.15 0.23 0.27 0.26 0.17 0.28 0.31
11 Graphite 4.6 0.04 0.05 0.03 0.04 2.00 2.50 1.10 0.87
12 Manganese ores 116 0.54 0.63 0.70 1.08 1.08 1.26 0.59 0.93

Source : Directorate of Mines, Orissa, Bhubaneswar.


Directorate of Geology, Orissa, Bhubaneswar.

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

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CHAPTER 10 MINERAL RESOURCES
registering an increase of 17.64% in quantity and 58.56% in value
Table 10.3
Production and Value of Minerals / Ores in Orissa

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

2 Metalic 1501.68 2139.56 2752.50 3910.16 5486.14 7002.11

3 Non-Metalic 121.66 161.67 180.50 2009.27 2221.13 2146.27

Total 3694.16 5198.53 6148.61 51326.68 62525.56 60240.74

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

District-wise Exploitation and Value of Major Minerals in Orissa, during 2004-05


(Quantity – Lakh tonne)
(Value – Rs. crore)

S District Chromite Coal Iron-ore Manganese ore Bauxite


l.
N Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value
o
.

1 2 3 4 5 6 7 8 9 10 11 12

1 Angul - - 445.61 1213.39 - - - - - -

2 Dhenkanal 0.12 1.77 - - - - - - - -

3 Jajpur 33.35 489.24 - - 11.01 30.83 - - - -

4 Jharsuguda - - 201.41 968.78 - - - - - -

5 Keonjhar 0.76 11.19 - - 367.93 1548.68 9.00 150.66 - -

6 Mayurbhanj - - - - 3.62 15.25 - - - -

7 Sundargarh - - 15.85 76.24 78.07 328.67 1.72 27.95 0.60 1.60

8 Koraput - - - - - - - - 48.52 129.06

9 Sambalpur - - 5.27 25.35 - - - - - -

TOTAL 34.23 502.20 668.14 2283.76 460.63 1923.43 10.72 178.61 49.12 130.66

Source: Directorate of Mines, Orissa, Bhubaneswar

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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10.09 Mining royalty is an Collection of mining royalty and other

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

crore in 2003-04, registering an increase revenue of the State has fluctuated


of 21.74%. Table 10.7 shows the trend of between 46.14% and 65.17% during the

revenue receipts from mining sector over last five years.


the period from 2000-01 to 2004-05.

Table 10.7
Revenue Receipt from Mining Sector and Total Own Non-Tax Revenue of Orissa
(Rs. in crore)

Total own non-


Year Revenue receipts tax revenue of Percentage of
Cess on Mining royalties and Total the State col.4 to col.5
mining other revenue
royalties from minerals
1 2 3 4 5 6

2000-01 0.09 360.32 360.41 685.5 52.58

2001-02 0.07 376.38 376.45 691.8 54.42

2002-03 Nil 443.53 443.53 961.2 46.14

2003-04 0.01 550.76 550.77 1094.5 50.32

2004-05(R.E) - 670.51 670.51 1028.9 65.17

R.E.: Revised Estimate


Source : 1. Directorate of Mines, Orissa, Bhubaneswar.
2. Annual Financial Statement, 2005-06

MINERAL EXPORTS analysis it is seen that the export quantity


of chromite and iron ore increased
10.10 Table 10.8 presents the export regularly except in the year 2003-04,
picture of minerals produced in Orissa. when the export quantity of chromite
During the year 2004-05, 171.67 lakh dropped a little less than the previous
tonne of minerals and ores were exported year. But during 2004-05 the export of
from the State as against 76.40 lakh iron ore increased tremendously i.e by
tonne in 2003-04. From the tabular 153% over 2003-04. Due to a high rise in

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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)

Sl. Items 2000-01 2001-02 2002-03 2003-04 2004-05(P)


No
Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value
1 2 3 4 5 6 7 8 9 10 11 12
1 Chromite 7.08 185.85 10.27 255.71 11.82 267.40 11.68 264.34 11.79 NA

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

4 Zincon - - - - - - 0.02 3.60 - NA

5 Manganese - - - - - - 0.03 10.08 0.06 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

DEVELOPMENT OF MINERAL BASED Rayagada district, Indian Metals and Ferro-


INDUSTRIES Alloys (IMFA) has set up a plant for
production of charge chrome / ferro
10.11 Mines and minerals chrome. The other important mineral
constitute a fundamental component of based industries established include two
nation’s resources and economic base. sponge iron plants in Keonjhar district, a
The rich reserves of minerals in Orissa refractory in Dhenkanal district and
have led to establishment of several mineral sands separation and synthetic
mineral based industries in Orissa, which rutile plants of Indian Rare Earth Ltd. at
include Rourkela Steel Plant (RSP), Chhatrapur in Ganjam district. Several
aluminium plants by INDAL and National cement plants have been set up in the
Aluminium Company (NALCO), three State and four coal based thermal power
charge chrome plants at Brahmanipal, plants have been set up at Talcher,
Bhadrak and Choudwar by Orissa Mining Kaniha, Ib Valley and Banharpalli.In
Corporation (OMC), Ferro Alloys addition NALCO, RSP, ICCL, INDAL etc.
Corporation (FACOR) and Indian Charge have set up their own coal based captive
Chrome Ltd. (ICCL). At Theruvalli in power plants.

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CHAPTER 10 MINERAL RESOURCES
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

Sl. Mineral Ore/ District 2000-01 2001-02 2002-03 2003-04 2004-05(P)


N
o.
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CHAPTER 10 MINERAL RESOURCES
1 2 3 4 5 6 7
1. Bauxite 603 458 724 792 732
(Koraput, Sundargarh)
2. Chromite 6743 5624 4786 4424 6607
(Dhenkanal, Jajpur, Keonjhar)
3. Coal, 19583 17069 17657 17318 17624
(Angul, Jharsuguda,
Sundargarh)
4. Dolomite and lime stone 4868 3302 3245 3516 1626
(Baragarh, Bolangir, Nuapada,
Koraput, Sundargarh)
5. Iron ore 13255 11983 10523 11418 19592
(Jajpur, Keonjhar,
Mayurbhanj, Sundargarh)
6. Manganese ore 4081 3437 3660 3892 1513
(Keonjhar, Sundargarh, Rayagada)
7. Others 3804 3262 3572 2383 2100
Total 52937 45135 44167 43743 49794

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

72.20 thousand hectares were in


ORISSA MINING CORPORATION LTD
operation. Out of the total of 594 leases

granted, 37 leases covering an area of 10.20 Orissa Mining Corporation Ltd.

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

which 18 leases were in operation, adding to the corporation's mineral

covering an area of 12.10 thousand inventory. OMC possesses a reserve of

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

chromite producer of the country. OMC is Corporation Ltd. during 2004-05.


Table 10.10
Quantity and Value of Minerals Produced by OMC Ltd. during 2004-05
Sl. Ore / mineral Quantity Value Despatched Value of Average
produced for export export daily
No . (thousand (Rs. in lakh) employment
tonne) (thousand (Rs. in lakh) of labour
tonne)
1 2 3 4 5 6 7
1 Chromite 691.08 19799 160.49 11234 1354

2 Iron ore 3063.05 39447 898.90 5517 1445

3 Chrome concentrate 170.37 12499 171.10 12499 7


4 Manganese ore 97.00 3898 - - 743

Total 4021.50 75643 1230.49 29250 3549


Source: Directorate of Mines, Orissa, Bhubaneswar.
10.21 OMC has earned the rare Empire Gold Mines N.L. of Australia have
distinction of becoming a debt free entered into joint ventures and agreements
Corporation and has registered record turn with O.M.C. This will also lead to the
over and profits. The liberalization policy development of infrastructure in the State
of Government of India and the vast and open new vistas for the Corporation in
mineral resources of the State have now the international arena. A reputed and well
drawn worldwide attention and opened established foreign company M/S Pohang
the door of Orissa Mining sector for Steel Company (POSCO), South Korea has
foreign investors. Reputed foreign firms evinced keen interest for setting up a
like the Global mining giants Rio Tintu and mega Steel project of 12MTPA in Orissa.

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