Though Orissa is rich in natural resources, the exploitation of minerals in the state languishes at a very low level compared to the potential. Stastitics say that the rate of exploitation of minerals/ores in the state is less than one per cent in cases of all minerals except for graphite, chormite and manganese.
While the rate of exploitation of chromite and manganese is marginally above one per cent, for graphite it is about four per cent.
This low exploitation is because no major mineral processing industry has come up since National Aluminium Company (Nalco) in early 1980s.
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Though exports have increased in the last two years after slump in 1997-98 and 1998-99, this is only limited to a few minerals like chromite, iron ore and ilmenite. Besides, with the increase being very marginal, it has not given any impetus to the industry.
However, there has been a steady increase in production of minerals-both in terms of quantity and value- over the years.
The production of minerals and ores in the state in the last fiscal is estimated at about 70 million tonnes valued at about Rs 3000 crore. Production of minerals and ores in the state has increased by 21 per cent between 19960-97 and 2000-01.
Coal and metallic minerals output increased 20.62 per cent and 23.22 per cent respectively while that of non-metallic minerals has increased by 15.51 per cent over the same period.
But this increasing trend in production hardly holds any promise considering the vast potential and scope for improving the exploitation f minerals in the state. Orissa is one of the largest deposits of iron ore, chromite, coal, bauxite, graphite, lime stone and dolomite in the country.
The all India mineral resource estimate puts the deposits in respect of chromite, bauxite, iron ore, graphite, manganese, and coal in the state at nealy 98 per cent, 60 per cent, 64 per cent, 28 per cent and 24 per cent of the total deposits of the country. Besides, the state also has abundant reserves of lime stone, dolomite, manganese, china clay, quarz, copper, nickel and vanadium.
Rate of exploitation of these minerals is as low as 0.40 per cent for iron ore, 0.09 per cent for coal, 0.17 per cent for bauxite, 0.20 per cent for lime stone, 0.29 per cent for dolomite, 0.01 per cent for china clay, 0.85 per cent for quarz.
The number of workers engaged directly in major mineral activities has actually declined over the years. While the major mineral units directly employed 61,192 in 1996-97, it went down by 13.5 per cent to 52,937 in 2000-01.
Apart from non-establishment of processing industry, what has come in the way of gearing up the mineral activities in the state is the difficulties faced by the mine owners in getting the mining lease renewed due to non-clearance by the forest and environment ministry, lack of new investment in the sector and use of obsolete machinery by the units, sources said.