Formation of an Odisha Mineral Exploration Corporation limited (OMECl) was initiated with Chief Secretary Aditya Prasad Padhi holding an inter-departmental coordination meeting on the subject on Friday.
Principal Secretary, Steel & Mines Raj Kumar Sharma presented the proposals for discussion. The meeting deliberated on various facets of the structure and functioning of the proposed corporation.
The objectives of the corporation, modalities for its formation, magnitude of its works, staffing pattern, funding provisions, etc., were discussed.
It was decided that the OMECl would be a subsidiary company of the Odisha Mining Corporation (OMC). Since the proposed OMECl would principally be a promotional agency, some revenue earning provisions be incorporated in it from the beginning. Accordingly, it was decided that the OMECl would extend the services of scientific exploration and analysis to other States and agencies on payment basis.
Sharma said there was a need for formation of the corporation as per the Odisha Mineral Exploration Policy-2015 for identification of new mines and minerals.
The proposal would soon be put to the Government for consideration.
Odisha has around 700 sqkm of virgin and freehold 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.
Till now, 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 State’s GDP, said official sources. The mining potential of the 700 sqkm unexplored area needs scientific exploration activities.
Near about 50 lakh meters 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 requiring around 30-35 years for drilling of the entire area. Other associated activities like remote sensing study, geological mapping, geophysical investigation, core logging, sampling, analysis, data interpretation, 3D modelling, preparation of plans and sections, reserve resource estimation, etc., are required to be completed to make the new mines auctionable.
The approximate cost for core drilling is around `200 crore per one lakh meter. As such, the financial requirement per annum would be around `300 crore to achieve the targeted quantum of 1.5 lakh meter drilling. So, the Government has in principle decided to form the OMECl, the sources added.