Odisha Govt Decides To Set Up Mineral Exploration Corporation
15 January, Bhubaneswar
Odisha government Friday decided to set up a Mineral Exploration Corporation to streamline the process of mining. Mines Secretary R K Sharma said the decision to set up the Corporation was taken at an inter-departmental coordination meeting held here under the Chairmanship of Chief Secretary A P Padhi.
Sharma said the Corporation would be a subsidiary company of Odisha Mining Corporation (OMC) and would operate as per the the guidelines of Odisha mineral exploration policy.
Official sources said the meeting decided that the Corporation which mainly be a promotional agency could also extend the services of scientific exploration and analysis to other States and agencies on payment.
Sharma said there was a need for the setting up of a corporation as per the Odisha Mineral Exploration Policy- 2015 for identification of new mines and minerals in the State.
Official sources said Odisha has around 700 sq, km of virgin and free hold area which is supposed to be bearing minerals like asbestos, bauxite, china clay, cobalt, chromites, fireclay, graphite, limestone, manganese, mineral sand, nickel, platinum group materials ( PGM), tin ore and vanadium apart from coal and iron ore.
But so far, explored mines account for around seven per cent of the Gross Domestic Product of the state. The vast reserves of minerals have substantial scope for enhanced contribution to the states GDP.
The mining potential of this 700 sq km unexplored area needs scientific exploration activities. Near about 50 lakh meters of core drilling has to be done in this exercise.
Besides core drilling, other associated activities like remote sensing study, geological mapping, geo-physical investigation, core logging, sampling , analysis. data interpretation, 3D modeling, preparation of plans and sections and reserve resource estimation are required to be completed to make the new mines auctionable.
The approximate cost for core drilling is around Rs 200 crore per one lakh meter. As such, the financial requirement per annum will come around Rs 300 crore. Considering all these, the government has in principle decided to form OMECL in the State.