Financial express reports on this. Following are some excerpts.

‘We are planning to take up further exploration of mineral resources with a view to accessing the deposits of different ores’’, says … Padmanabha Behera. …

Geologists in the state believe that estimates of proven deposits are only the tip of the iceberg. …

As per the present estimation of the state directorate of geology, Orissa has 4,177 million tonnes (mt) of iron ore, 1,530 mt of bauxite, 60,983 mt of coal, 2,224 mt of limestone and 111 mt of chrome ore. …

The state government has signed memoranda of understanding (MoU) with 44 steel companies for an investment of Rs 1.97 lakh crore for built-up steel-making capacity of 74.66 mt. As many as 25 companies have gone in for production. Besides, 13 MoUs in the power sector, four in the aluminium sector have also been signed. …

Iron ore deposits have been explored up to 25 to 30 metre depth and the government is contemplating deeper exploration, he added.

J N Das, an expert on Orissa minerals, however, cautioned the state government that mining of iron ore below 25-30 metres would not be economically viable.

‘‘Oxidisation is the ultimate cause of the precipitation of iron oxides in the upper crust. Two rules which govern the fixation and mobilisation of iron in aqueous solution are: (1)oxidising conditions promote the precipitation of iron ore, reducing conditions promote the solution; (2)acid conditions generally promote the solution of iron, alkaline conditions and promote the precipitation of iron. Thus, iron ore is accumulated towards the surface. Iron ore is not expected below banded iron silica rocks (BHQ/BH)/Quartzite in a normal deposit cycle. Even if it occurs due to structural disturbances like folding etc., it can’t be mined economically for use in steel industries”, he says.

The government is also preparing a mining policy with emphasis on maximum value addition in the state, optimum use and conservation of minerals. The policy will also encourage further exploration of existing mines and ew deposits.

‘‘Once the Centre announces its mining policy on the basis of the Hoda Committee report, the state will put in place its first-ever mining policy’’, says the steel and mines minister.

The state is at present following the policy of value addition for recommending mining lease for companies. It is in favour of a ban on export of iron ore, which has touched 17 m.t out of the total production of 61 m.t in 2006-07.