UP plans big for tapping minerals

The Department of Geology and Mining in Uttar Pradesh has chalked out ambitious plans for the coming years, in order to explore and develop the present mineral resources in the state.

The department has recently found traces of platinum at Lalitpur and is now busy realising its commercial viability.

"We have issued four prospective licenses to De Beers company, engaged in diamond mining, trading and exploration, to carry preliminary investigations in Lalitpur, Jhansi and Sonbhadra for diamond and other precious metals. Research will soon be started on an area about 10, 000 sq km in Lalitpur by the company under the monitoring of the department's experts," said MVS Rami Reddy, secretary (industries, mining and geology), Uttar Pradesh.

The department, since its inception in 1955, is actively engaged in search of minerals as well as promotion of scientific development of mineral resources, their conservation and development of mineral-based industries in the state.

Major mineral resources in Uttar Pradesh after its bifurcation are confined to the southern part of the state. The main reserves comprise coal, china clay, cement-grade limestone, silica sand, rock phosphate, pyrophyllite, etc., at the area stretching from Lalitpur, Jhansi, Banda and Sonbhadra.

"The department will give impetus to the mineral exploration activity during the 11th Five-Year Plan (2007-2012). The efforts will be focused on re-evaluation of the data generated during exploration work carried out so far in the light of modern technological advancements and information. This will help in determining the commercial value of the deposits which were hitherto considered uneconomical and of low grade," Reddy said.

The department had a revenue collection of Rs 350.50 crore in the year 2006-07. In the next five years, the revenue realisation is envisaged to go up from Rs 364.36 crore in the year 2007-08 to Rs 700.43 crore in 2011-12. The total mineral revenue contribution in the next five years is estimated to be Rs 2,559.73 crore.

"We have set a target of Rs 448 crore this year and are positive about the collections, as a number of new initiatives and mining activities will be started soon in the state. The latest and the most important one being the re-functioning of the cement factories at Dala (Sonbhadra) and Chunar (Mirzapur) by Jaypee Group of Industries," added Reddy.

Huge cement-grade limestone reserves are available in Sonbhadra district that fed the now-closed cement factories of the Cement Corporation of Uttar Pradesh.

"The high court has permitted the Jaypee group to take up the factories, which will now be revived and modernised by the company," Reddy said.

In addition to this, the department is thinking high on coal production as well.

"The current production of coal is about 15 million tonnes per year, which is expected to go up by 3-4 million tonnes considering we have sanctioned another project for Northern Coalfields Ltd at Krishnashila-Sonbhadra, to be grounded by December," Reddy said.

Northern Coalfields Ltd already has three projects in Sonbhadra for exploiting coal.

"To provide further momentum to exploration activity, public-private partnerships will also be encouraged to attract private entrepreneurs," Reddy said.