Odisha plans integrated rare-earth corridor to boost mineral processing

The proposed Gopalpur cluster will integrate mineral extraction, processing and permanent-magnet manufacturing to strengthen Odisha's critical mineral value chain

Odisha is set to develop a dedicated rare-earth corridor along its eastern coast, with a state-owned company stepping up efforts to acquire two additional beach-sand mineral prospects to secure raw material supplies for downstream industries.

The proposed corridor will be developed as an integrated industrial cluster spanning mineral extraction, separation, rare-earth processing, metal production and permanent-magnet manufacturing. 

Officials said Odisha is the first state to prepare a framework for a rare-earth corridor along the Ganjam-Puri coast after the Union Budget 2026-27 announced such corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to promote mining, processing, research and manufacturing.   

Odisha has a significant presence in the beach-sand mineral industry. The government estimates that the state accounts for around 30 per cent of India’s total heavy-mineral beach-sand deposits, including around 24.4 per cent of ilmenite and 24 per cent of monazite resources. Monazite contains rare earth elements as well as thorium, while ilmenite is an important feedstock for titanium products. 

With around 3.16 million tonnes (mt) of monazite deposits and 172.25 mt of ilmenite deposits out of the country’s total estimated 13.15 mt of monazite and 706.24 mt of ilmenite reserves, Odisha forms part of the country’s eastern coastal critical mineral belt, which, along with the southern coast, accounts for a large share of in-situ rare-earth resources. 

According to officials, Gopalpur has been identified as the anchor location beca­use it brings together several critical elements of the proposed value chain. Indian Rare Earths Limited operates its Odisha Sands Complex (Oscom) at Chatrapur in Ganjam, which proces­ses mineral sands and prod­- uces rare-earth-bearing material. 

The Odisha Mining Corporation (OMC) is in the process of acquiring two additional beach-sand prospects in the Krushnaprasad region, covering the Bajrakot-Brahmapur stretch and the Rushikulya-Bajrakot stretch with areas of 520 hectares and 1,185 hectares, respectively. It has recently signed an agreement with the Atomic Minerals Directorate for Exploration and Research, Hyderabad, to explore critical minerals. 

OMC has already identified a 1,980-hectare prospect in the Jagatsinghpur-Paradip region as part of the wider resource landscape. Forest clearance for the proposed project is underway. The government plans to use these additional resources to strengthen upstream security while building a more integrated industrial ecosystem around Gopalpur, officials said. 

“A main project area of 852 hectares has been identified for the proposed rare earth corridor having an estimated raw-sand resource of 328 mt, with a deposit life of 50 years. Initially, it is planned to have a processing capacity of six million tonnes per annum of run-of-mine material and around 416,000 tonnes of total heavy minerals,” an official of the Steel and Mines department told Business Standard. 

 

Oscom has a rare earth extraction plant producing about 11,200 tonnes of rare earth chloride annually, alongside 13,500 tonnes of trisodium phosphate. The facility also produces nuclear-grade ammonium diuranate from monazite for supply to the Department of Atomic Energy.

 

However, there is a gap between extraction and higher-value manufacturing as rare earth chloride produced at Oscom is shipped to IREL’s separation facility at Aluva in Kerala, while further conversion into metals, alloys and magnets takes place outside the immediate Gopalpur cluster. 

The proposed corridor will address this gap by attracting rare earth oxide-separation facilities, metal and alloy production units, and manufacturers of permanent magnets. The state government has already approved five projects with proposed investments of ~26,450 crore and an estimated 18,450 jobs.

 

Hemant Sharma, additional chief secretary of the Industries department, said Odisha is focusing on port-led industrialisation, and the development of an integrated rare earth corridor along the eastern coast is an important component of the master strategy the state has prepared.

 

“We are in discussion with several investors on projects related to rare earth and critical minerals. We are hopeful of signing more MoUs with some investors soon,” he said before the three-day India Chem 2026 that concluded in Mumbai recently.