In the wake of recent US attacks on Venezuela, which is being interpreted as a plea to control the oil reserve of the South American country, experts have highlighted the significance of how natural resources play a vital role in the power hegemony that can shift the balance in today’s volatile geopolitical order.
In the backdrop of this international development, India’s focus on tapping Odisha’s vast mineral resources assumes strategic significance, which is far beyond regional development.
Often referred to as the ‘mineral hub of India’, Odisha has a vast reservoir of mineral resources. Apart from being the largest producer of Iron ore, the state has vast deposits of coal, manganese, bauxite, chromite, limestone, graphite and quartz, among others.
Iron ore, bauxite, chromite, manganese, limestone, which are major inputs for steel, aluminum and infrastructure industries, provides an added advantage to the state to tap its potential to the optimum.
Harnessing these natural resources, especially iron ore offer India and Odisha to strengthen the country’s industrial infrastructure. In addition, it will not only make the country self sufficient but also generate revenue for the state and will strengthen the economy of the country and the state.
Talking of iron ore, as one of the richest iron deposits in Asia, Odisha contributes 50-55% of national output, according to official records. Over the years, these iron ore deposits have grown abundantly- from around 4,180 million tonnes (MT) in 2000 to over 9,737 MT by 2023.
Major iron ore belts including Keonjhar, Sundargarh, Joda-Barbil and Mayurbhanj districts, known for high-grade hematite deposits, have contributed significantly to steel production.
Steel plants like Rourkela, Kalinga Nagar, Jharsuguda and others, including plants outside Odisha, rely on this ore. The state has also exported this rich mineral outside the country.
Major players domestic and international such as Jindal, POSCO, Tata, among others, have shown interest and have invested in the state from time to time to tap its rich resources.
Yet despite this dominance, Odisha’s iron economy has not been utilized to the optimum. It remains defined by extraction and has failed to transform into a market leader.
If reports are to go by, more than 70 per cent of the iron reserves remain untapped and unexplored. Moreover, reports suggest that the state with iron abundance is way below its mining permit. Its mining output remains around 155-160 million tonnes in contrast to the permitted 240 million tonnes with environmental clearance.
Such gap has not only put a hole in the state exchequer in terms of lost revenue but has also affected employment. Most importantly, the state has also lost strategic leverage.
In a world where natural resources are driving power and shaping policies, it’s unwise to leave proven mineral wealth unexplored.
So, what is the way forward?
Exploration: Tapping the unexplored mining deposits has been the major bottleneck. Precise mapping with the help of technology is the first step towards moving forward. Locating the deposits with precise accuracy will not only help in saving time but also give a blueprint to plan strategies.
Proper usage of mines: It has been observed that despite being given clear chit by the government on environmental issues, certain mines are found wanting in terms of their capacity. They are not used to their potential. It is important that they run to their capability and this can be achieved through proper monitoring coupled with adequate incentives to all the stakeholders involved in the activity.
Better use of technology: In this technology- driven world, it’s pertinent to apply modern technology in the mining sector to improve efficiency in terms of sorting, waste recycling and other activities related to mining.
Engage localites as stakeholders: Most of the iron ore mines face obstacles because of resistance from the local communities who fear that their land will be lost, they will face health and other issues. It is important to take them into confidence by creating awareness camps on how such areas will create employment opportunities, better infrastructure, which in turn will develop their village.
Odisha can leverage India’s economy through enhanced mining reforms, driving investments through public-private partnership and create a roadmap towards ‘Atmanirbhar Bharat’ by reducing its dependence on iron imports.
