State initiates steps to explore Tangarapada chrome ore mines

After its failed bid to rope in a private partner to develop Tangarapada chrome ore mines, the Orissa government has decided to take up the prospecting of this mines itself to assess the available reserves there.

The prospecting work is expected to be completed within next 2 to 3 months.

The directorate of geology has been entrusted to start geological mapping and geo-physical survey for prospecting of Tangarapada mines.

It will take up close space mapping of the ore body in the first stage and drilling may be taken up at a later stage if sufficient ore are found. Since these are irregular bodies, 3-dimensional figures will be taken for facilitating drilling.

The mining lease for this property is held by the state owned Industrial Development Corporation of Orissa (Idcol). The corporation had requested the directorate of geology to take up prospecting of the Tangarapada chrome mines to help it prepare its mining plan and de-reservation proposal to be submitted to the state government.

“The mapping may take about one month and drilling may take about 1 to 2 months. So the entire process is expected to be completed in about 2 to 3 months,” a senior official of the directorate of geology told Business Standard. Based on the resource estimation, Idcol will initiate steps for obtaining the forest and environment clearance from the Union government.

Idcol was granted mining lease (ML) for Tangarapada chrome mines in1986. However, the ML could not be executed as Idcol is yet to submit the mining and de-reservation plan to the government.

Accordingly, the state government has asked Idcol to submit the mining plan and de-reservation plan to the steel and mines department by 11 September 2009 for execution of the mining lease for Tangarapada mines.

The latest initiative assumes importance as the state government has cancelled all the three bids received by Idcol for the development of this property in joint venture, following the recommendation of the High Power Technical Committee (HPTC) constituted by Idcol to evaluate the bids. HPTC, in its recommendation to the government had stated that Idcol has achieved fiscal turn around and can invest about Rs15 to 20 crore required for development of this mine. Meanwhile, the state government has allowed Idcol to take up exploration and development of Tangarapada chrome mines in partnership with another state-owned company, Orissa Mining Corporation (OMC), in the interest of the state. This will help to maximise the value addition, the committee strongly argued.

The first round official discussion between the officials of Idcol and OMC has been held for working out the modalities of the proposed joint venture.