Mineral Resources of Odisha - Overview

Introduction: Odisha as a Mineral Storehouse

Odisha stands among the richest states in India for mineral resources, possessing a disproportionate share of the country’s reserves of several critical minerals. The state accounts for 95 per cent of India’s chromite, 92 per cent of nickel, 69 per cent of bauxite, 33 per cent of iron ore, 24 per cent of coal, and significant reserves of manganese, limestone, dolomite, graphite, and gemstones. These mineral deposits are primarily concentrated in a crescent-shaped belt that stretches across the Northern Plateau, the eastern fringes of the Central Tablelands, and the Eastern Ghats — a geological treasure that has shaped the state’s industrial trajectory. Mining and quarrying contribute approximately 8-10 per cent to Odisha’s Gross State Domestic Product (GSDP), though the sector’s impact on employment, infrastructure, and environment is far broader than the GDP share suggests.

Geological Basis for Mineral Wealth

The mineral wealth of Odisha is rooted in its diverse geological formations. The Archaean rocks of the Iron Ore Supergroup — banded hematite jasper (BHJ), banded hematite quartzite (BHQ), and associated formations — host the vast iron ore deposits of the Keonjhar-Sundargarh belt. The Eastern Ghats Granulite Belt, comprising khondalites, charnockites, and associated rocks, is the primary host of bauxite deposits formed by intense chemical weathering over millions of years. The Gondwana sedimentary basins, particularly the Talcher and Ib Valley basins, contain extensive Permian coal measures. The chromite deposits of the Sukinda and Boula-Nausahi belts are associated with the ultramafic rocks of the Iron Ore Group. The Singhbhum Shear Zone, extending from Jharkhand into Odisha, is associated with uranium, copper, and gold mineralisation. Limestone, dolomite, and graphite occur in the Proterozoic sediments of the Central Tablelands.

Major Mineral Belts

The Keonjhar-Sundargarh Iron Ore Belt is the backbone of Odisha’s mineral economy, containing the famous mines of Kiriburu, Meghahatuburu, Bolani, Barsua, Tensa, and Joda-Badbil. This belt produces some of India’s highest-grade iron ore, with hematite averaging 62-68 per cent iron content. The Sukinda Chromite Belt in Jajpur district hosts over 95 per cent of India’s chromite reserves and is one of the world’s premier sources of this strategic mineral. The Eastern Ghats Bauxite Belt, particularly the Panchpatmali plateau in Koraput (which hosts the country’s largest bauxite mine at Panchpatmali operated by NALCO) and Niyamgiri in Kalahandi, represents Asia’s largest concentration of high-grade bauxite. The Talcher-Ib Valley Coal Belt, part of the Lower Gondwana Mahanadi Basin, is the premier coal-producing region of Odisha, supplying thermal-grade coal primarily to power stations.

Mineral Production and Contribution

Economic and Environmental Dimensions

The mining sector has been the primary driver of industrialisation in Odisha, attracting investments in steel, aluminium, ferroalloys, and thermal power. The state’s industrial corridor from Jharsuguda through Sambalpur, Angul, Dhenkanal, and Jajpur to Paradip — often called the ‘minerals-industrial corridor’ — is one of India’s most significant industrial concentrations. Mining royalties and related revenues constitute a major source of income for the state exchequer. However, the environmental and social costs have been equally substantial. Open-cast mining has scarred vast landscapes, particularly in the Keonjhar and Sundargarh districts. Chromite mining in Sukinda has created one of the most polluted stretches of water in the country, with hexavalent chromium contamination posing serious health risks. Displacement of tribal communities, loss of forest cover, dust pollution, and water depletion are chronic problems in the mining belts. The Supreme Court of India has intervened on multiple occasions to regulate mining, including temporary bans on iron ore mining to check illegal operations, and the mandatory requirement of environmental clearances and forest clearances has, to some extent, brought greater regulation to the sector.