Odisha to set up Mineral Exploration Corporation

The Odisha government today decided to set up Mineral Exploration Corporation Limited (MECL) in a bid to tap virgin mining fields and streamline procedures.
The decision to set up the corporation, under the provisions of the Odisha Mineral Exploration Policy, was taken at a meeting chaired by Chief Secretary A P Padhi here.
Steel and Mines Secretary RK Sharma said the state government has finalised the modalities through which the G3 level mines identified for auction would be brought into G2 category as per provisions of the amended MMDR Act.
Once these mines are categorised as G2, the state government can issue notifications on its own without the permission of the Centre, Sharma said.

The state government is yet to issue a notification for auction of seven mines which are in G3 level.
The Corporation would also play a key role in giving operational clearance and extension of leases as per the amended MMDR Act to mines which have been closed due to irregularities or lease expiry, officials said.

The proposed corporation would be a subsidiary company of the state-run Odisha Mining Corporation (OMC).
Chief Secretary Padhi suggested that since the proposed body would principally be a promotional agency, some revenue earning provisions should be incorporated in it from the beginning.
Officials in the Steel and Mines Department said Odisha has around 700 sq km of virgin and freehold area which is potentially rich in 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.

Explored mines account for around 7 per cent of the Gross Domestic Product of the state. The vast reserves of minerals can boost the state's growth further, they said.
Scientific exploration is needed to realise the mining potential of this untapped 700 sq km area. About 50 lakh meter of core drilling has to be done in this exercise.
Experts say that with available technology, around 1.5 lakh meter core drilling can be done per year, thus requiring around 30-35 years for covering the entire area.
Besides core drilling, other associated activities which are needed include remote sensing study, geological mapping, geo-physical investigation, core logging, sampling, 3D modelling, reserve resource estimation, among others.

The approximate cost for core drilling is around Rs 200 crore per one lakh meter. As such, the financial requirement would come around Rs 300 crore per annum to achieve the target.