IDCOL- IREL inks pact to set up Rs.450 crore Mineral Separation project in Ganjam coast.

07 Feb,Bhubaneswar,

The Industrial Development Corporation of Odisha Limited (IDCOL), as a part of its plan to diversify its activities, signed a Memorandum of Understanding (MoU) Saturday with Government of India undertaking Indian Rare Earth Limited (IREL), for mineral exploration and setting- up of a Mineral Separation Plant.

The proposed project would be set up in joint venture at an estimated cost of around Rs.450 core. The Mineral Separation Plant will be set-up in village area of Gokhurpada, Mayurpada, Kontiagarh & Prayagi in the Ganjam District.

The proposed project will go for Beach Sand mining and mineral processing to produce Limonite, Garnet, Sillimanite, Rutile, Zircon and Monazite.

Vishal K Dev, Chairman –cum-Managing Director , state Public sector company IDCOL and Dr. R.N.Patra, CMD,IREL inked the pact at State Secretariat in Presence of Odisha Industries Minister Devi Prasad Mishra.

Mishra said the development and construction of the joint venture project is about two years and would create employment opportunity for about 400 persons. It will also attract downstream units in the area , he said.

As per the MoU , IDCOL will have equity shareholding up to 49 per cent , while the IREL will have 51 per cent share in the project, Industries Minister said.

IDCOL has applied to the Government of Odisha for grant of mining lease , prospecting license for Beach Sand mining over an area of about
6000 hectares in different villages along the Ganjam Coast, said the IDCOL CMD Vishal Dev.

According to estimates by experts, the estimated reserve is more than 100 million ton of beach sand heavy minerals which remains mostly untapped along the 470 Km long coast line of Odisha, he said .

IDCOL has roped in IREL for the new activity, as a Joint Venture Partner which has experience in mining and separation of heavy minerals like Limonite, Monazite, Zircon, Rutile, Garnet and Sillimanite from Beach Sand and also production of rare earth and thorium compounds, said Vishal Dev.

With the expertise in exploration and Mineral separation activities IREL has , Mineral Separation Units in Kerala, Tamilnadu and Odisha.

“The area appears to be promising for mining of heavy minerals. But clearance from statutory authorities will take a lot of time and IREL will
extend all support to the success of the project”, said IREL CMD Dr. Patra.