Largest ilmenite miner plans excavation in Odisha

State has third biggest ilmenite deposit in India

V V Minerals, a Tamilnadu-based mining firm having largest market share in ilmenite production and exports, has evinced interest for excavation and refining of the mineral in Odisha with an investment of Rs 100 crore.

“We are planning to apply for 2-3 areas in Odisha for excavating ilmenite and garnet. We will also invest Rs 75 crore to 100 crore for establishing a mineral refining plant in the state,” said V Subramaniun, director of the firm. The company is the first private exporter of ilmenite and is the leading manufacturer and exporter of the mineral, according to its website. Ilmenite is further upgraded to titanium dioxide to be used in paper, plastic, paint colour and cosmetic industries such as sunscreen. According to a 2011 report of ministry of mines, Odisha has third largest deposit of ilmenite in the country. Andhra Pradesh has the biggest deposit followed by Kerala and Tamil Nadu at the second spot.

In Odisha, major deposits have been identified near Chhatrapur and Brahmagiri area. Indian Rare Earths Ltd, a central government undertaking is currently engaged in mining and export of this material from Odisha.

Though India has close to 18 per cent ilmenite deposit globally, production of it has been very poor. Among the states, ilmenite production is highest in Tamil Nadu, which is followed by Odisha.

“Production of ilmenite has been slow in India due to tough regulations and limited awareness about it. The government must change its position on the mineral,” added Subramaniun.

Ilmenite deposits are mostly found near coastal areas and hence establishment of plants often come under the purview of Coastal Regulation Zone rules leading to delays in operations. Further, ilmenite being a heavy mineral, the sample of excavated mineral has to be verified by Atomic Energy Regulatory Board for traces of radioactive deposits. Further, in the 2013-14 Union Budget, the government had imposed 10 per cent export duty on unprocessed ilmenite and five per cent on processed ilmenite.

“Along with the tough regulations, the processing of lease grant should be made faster if we want to tap its potential because apart from exports, the mineral will be in huge demand from domestic market in future,” said the V V Mineral official.

The proposal of V V Mineral is strategically important as Kolkata-based Saraf Agencies Private Ltd (SAPL) is constructing a titanium slag plant near Gopalpur with an investment of Rs 250 crore. These plants use ilmenite as feedstock.