Iron Ore and Manganese Deposits of Odisha
Iron Ore Deposits - Geological Setting
The iron ore deposits of Odisha are hosted within the Archaean Iron Ore Group (IOG) of rocks, dating back 2.5 to 3.0 billion years, and are part of the great Iron Ore Craton that extends from Singhbhum in Jharkhand through Keonjhar and Sundargarh in Odisha. The deposits occur as massive bedded formations of hematite, interbedded with banded hematite jasper (BHJ) and banded hematite quartzite (BHQ), and are associated with basic volcanics, shales, and phyllites. The process of supergene enrichment over geological time has concentrated iron to commercially attractive grades of 60-68 per cent iron content. The ore types include hard massive hematite, laminated hematite, and powdery blue dust — the latter being almost pure hematite with iron content exceeding 67 per cent and being highly valued for export and direct reduction processes.
Major Iron Ore Mining Centres
The Keonjhar district is the epicentre of Odisha’s iron ore production, contributing approximately 50-55 per cent of the state’s total output. The Joda-Barbil region is the most intensively mined area, with a cluster of large open-cast mines including the Bolani, Barsua, Tensa, Joda East, and Kalta mines. To the north, along the Odisha-Jharkhand border, the mines of Kiriburu, Meghahatuburu, and Bolani are operated by the Steel Authority of India Limited (SAIL) specifically to supply the captive requirements of the integrated steel plants at Rourkela, Bokaro, and Durgapur. Sundargarh district contains another cluster of iron mines, including the Barsuan mines and the K. M. Pradhan mines, together accounting for about 20 per cent of the state’s production.
The total iron ore reserves in Odisha are estimated at over 5,300 million tonnes, representing approximately 33 per cent of India’s total reserves. Hematite accounts for the bulk of these reserves, with smaller amounts of magnetite occurring in the Mayurbhanj district. The state’s annual iron ore production ranges between 100 and 140 million tonnes, making Odisha the largest iron ore-producing state in India. A substantial portion of this production — roughly 50-60 per cent — is exported through the ports of Paradip, Dhamra, and Visakhapatnam, with China being the largest market. The remainder is consumed domestically by integrated steel plants, sponge iron units, and pelletisation plants located within Odisha and elsewhere in India.
Manganese Deposits
Odisha is also a leading producer of manganese, accounting for approximately 20 per cent of India’s total production. The manganese deposits occur in two distinct geological settings: the Archaean Iron Ore Group of Keonjhar and Sundargarh districts, and the Eastern Ghats khondalite belt of Koraput and Rayagada districts. The major manganese mining centres in the Keonjhar-Sundargarh belt include the Joda, Barbil, Bichhakundi, and Bonai areas. The ores are predominantly of the psilomelane, pyrolusite, and braunite types, with manganese content ranging from 30 to 50 per cent. In the Koraput-Rayagada belt, manganese occurs as small but high-grade pockets in the Eastern Ghats granulitic rocks, with the Kuttinga mines and the mines in the Rayagada region being noteworthy.
Manganese is an essential input for steelmaking, where it acts as a deoxidiser and desulphuriser, and is also used in the manufacture of dry cell batteries, chemicals, and ferroalloys. The manganese mines of Odisha supply both domestic ferroalloy plants — particularly in the Jajpur-Dhenkanal area — and the export market. The state’s total manganese reserves are estimated at approximately 120 million tonnes. As with iron ore mining, manganese extraction is dominated by open-cast methods and has left its environmental footprint, with abandoned and unreclaimed pits dotting the mining landscape of north Odisha.
Industrial Linkages and Infrastructure
The proximity of iron ore and manganese to coal reserves, and their mutual accessibility via the railway network, has been the foundational logic for locating the major steel plants in and around Odisha. The Rourkela Steel Plant, set up in 1955, was deliberately sited at the junction of the iron ore belt (Keonjhar), the manganese belt (Sundargarh-Keonjhar), the coal belt (Ib Valley), and the limestone sources. Subsequent investments — Tata Steel at Kalinganagar, Jindal Steel and Power at Angul, Bhushan Steel at Meramandali, Essar Steel (now ArcelorMittal Nippon Steel) at Paradip — have reinforced this mineral-industrial linkage. The dedicated freight corridors, slurry pipelines for iron ore transport, and port handling facilities at Paradip and Dhamra are critical infrastructure that underpins this mineral-based industrialisation. The Daitari-Banspani railway line was built specifically to serve the iron ore mines of Keonjhar and link them to Paradip port. The sector generates significant revenue for the state through royalty, District Mineral Foundation (DMF) contributions, and the Odisha Mineral Bearing Areas Development Corporation (OMBADC) funds, which are mandated to be spent on local area development and welfare in mining-affected communities.