With investors lining up for mineral-based industries like steel, aluminium, power, cement and ferro-alloys, the Orissa government is preparing to take fresh stock of its mineral resources.
??We are planning to take up further exploration of mineral resources with a view to accessing the deposits of different ores??, says state steel and mines minister, Padmanabha Behera.
Geologists in the state believe that estimates of proven deposits are only the tip of the iceberg.
As per the present estimation of the state directorate of geology, Orissa has 4,177 million tonnes (mt) of iron ore, 1,530 mt of bauxite, 60,983 mt of coal, 2,224 mt of limestone and 111 mt of chrome ore.
The state government has signed memoranda of understanding (MoU) with 44 steel companies for an investment of Rs 1.97 lakh crore for built-up steel-making capacity of 74.66 mt. As many as 25 companies have gone in for production. Besides, 13 MoUs in the power sector, four in the aluminium sector have also been signed.
However, there are apprehensions that the existing mineral resources would not be able to meet the demand of industries that are coming up, particularly in case of iron ore, bauxite and chrome ore, which will be depleted in the next 25 years.
??There would be no shortage of iron ore for setting up steel plants in the state??, says the state steel and mines minister. According to him, ??There is no ground for fear that iron ore reserves will be depleted if the MoUs were given iron ore linkages??.
Iron ore deposits have been explored up to 25 to 30 metre depth and the government is contemplating deeper exploration, he added.
J N Das, an expert on Orissa minerals, however, cautioned the state government that mining of iron ore below 25-30 metres would not be economically viable.
??Oxidisation is the ultimate cause of the precipitation of iron oxides in the upper crust. Two rules which govern the fixation and mobilisation of iron in aqueous solution are: (1)oxidising conditions promote the precipitation of iron ore, reducing conditions promote the solution; (2)acid conditions generally promote the solution of iron, alkaline conditions and promote the precipitation of iron. Thus, iron ore is accumulated towards the surface. Iron ore is not expected below banded iron silica rocks (BHQ/BH)/Quartzite in a normal deposit cycle. Even if it occurs due to structural disturbances like folding etc., it can’t be mined economically for use in steel industries”, he says.
It is known that theft of minerals has been contributing to the fast depletion of resources. In 2006-07, 4.7 lakh tonnes of minerals from 360 vehicles worth Rs 2.12 crore was seized during raids. The state government has now decided to enact a comprehensive law to check theft of minerals.
The government is also preparing a mining policy with emphasis on maximum value addition in the state, optimum use and conservation of minerals. The policy will also encourage further exploration of existing mines and ew deposits.
??Once the Centre announces its mining policy on the basis of the Hoda Committee report, the state will put in place its first-ever mining policy??, says the steel and mines minister.
The state is at present following the policy of value addition for recommending mining lease for companies. It is in favour of a ban on export of iron ore, which has touched 17 m.t out of the total production of 61 m.t in 2006-07.