POTENTIALITY AND PROSPECT OF

EXPLORATION OF FRESH IRON ORE

RESERVES IN
ODISHA AT A GLANCE

SUBRAT KUMAR KAR

INTRODUCTION
The last fifteen years have been witnessed significant development in Iron and Steel
production in India. The country has emerged as the largest producer of DRI in the world
and third largest of steel in FY 2015-16.The country is very near to reach its target capacity
of steel production in FY 2016-17 and for that need huge raw iron ore as a raw material.
In India numbers of states produce iron ore, Odisha along produce almost 50 percent of iron
ore of the country and feeds numbers of steel plants located in Jharkhand, Bengal,
Tamilnadu, Maharashtra and Gujarat. Odisha poses around 33 percent of iron ore of the
country.

The state Orissa has a historic background in mining since ancient period. In modern age 1st
mining of iron ore was started in 1909 in Gurumahisani located in erstwhile princely state
Mayurbhanj, the area was initially surveyed by late P.N Bose and report was published in
Geological Journal in 1904 and later on investigated by Perin & Weld for Tata. On the
basis of investigation the first mother mines of TISCO steel plant was started production of
iron ore in 1909. In subsequent year (1911-12) another two iron ore mines Sulaipat and
Badampahar were stared. As per information available, in Odisha coal was first excavated in
the Rampur area of IB valley. The first manganese mines was opened in Goriajhar in 1910
followed by Dolomite and Limestone mining in 1914 at Panposh and Bishra respectively of
present Sundargarh district.

Due continuation of investigation of iron ore the existence of rich deposits of iron ore in the
erstwhile State Keonjhar was brought in light by Frederik Dunes Whiffin, the manager of
Bengal Trading company and obtained first prospecting license for iron ore in Champua
sub-division. The license was subsequently granted to M/s. Bird & Co in 1924 and mining
was commenced around 1927.

After detail survey and study of Keonjhar and Sundargarh district by H.C Jones, M.S
Krishana, B.C Gupta, J.A Dunn during the period 1919-1940, first systematic exploration
of iron ore was carried out in 1954 by Indian Bureau of Mines in Barsua, which is now
being worked by SAIL.
Later on the potentiality of Daitari and Gandhamardan deposits were brought to light by the
State Directorate of Mines during 1957-58 and 1962-63 respectively. In present GSI is
conducting exploration secessions at different part of geological potential area.

The estimated reserve and resources may be more if include the available reserve and
resources of low grade iron ore which was never taken in account in past .

In this paper I am trying my best to re assess the potentiality of additional reserves and
resources of iron ore in Odisha is based on study, survey and exploration conducted by
different institution in past.
GEOLOGY OF IRON ORE DEPOSITS OF ODISHA
Odisha, situated on the eastern seaboard of India is one of the gifted parts of the world,
where a gamut of mineral resources exist in bounty. The state is endowed with large reserves
of bauxite, china clay, chromite, coal, dolomite, fireclay, graphite, gemstones, iron ore,
limestone, manganese ore, mineral sand, nickel ore, pyrophylite and quartz.
The rich mineral wealth of the state is attributed to its favorable geological set-up. Situated on
the eastern fringe of the peninsular India, Odisha has about 72.5% of the area occupied by
Precambrian metamorphic rocks (of Archaean and Proterozoic age) which host the majority
of the minerals.
The Archaean rocks in northern Odisha include the supracrustal belts of meta sedimentary
rocks including Iron Ore Super Group having deposits of iron, manganese, gold and base
metals. These are also represented by the gneisses, granite, migmatite (Singhbhum, Bonai and
Mayurbhanj Plutons) and mafic/ultramafic intrusives. These intrusives are associated with the
chromite, titaniferrous vanadiferrous magnetite and PG.

Fig - 1

(By S.K Acharyya et al/ Journal of Asian Earth Science-39 (2010))

The Iron Ore Super Group of Odisha comprising three BIFs occurs along the periphery of
Archean continental i.e. the North Odisha Iron ore Craton. The Craton block bounded by
the arcuate copper belt thrust zone (Singhbhum shear zone) in the north and Sukinda
Chromite belt thrust zone in south.

Different research paper and geological text revels that the cause of formation and
localisation of iron ore bodies are by supergene enrichment process. The parent rocks of
the iron ore deposits are Banded Iron Formation (BIF) and more precisely the Banded
Hematite Jaspar (BHJ) or Banded Hematite Quartzite (BHQ) and Ferrugineous shales.
Beside variety of iron ores, hematite constitutes the predominant band in layered BIF.

The BIF along with volcano-sedimentary rocks pile constitutes is known as Iron Ore Group
(Fig – 1). The iron ore deposits of the State broadly confined in five distinct geographical
zones, namely ,

i. Gorumahisani – Badampahar,
ii. Bonai – Keonjhar (Jamda – Koira belt)
iii. Gandhamardan
iv. Tomka- Daitari
v. Hirapur.

i. The Gorumahisani – Badampahar belt: The iron deposits in this belt trending
N-S are associated with banded hematite/ magnetite grunerite and BHJ are
considered to be older than Bonai – Keonjhar BIF. In this belt, the iron ore
body exposed at Garumahisani hills and further exposed in Sulaipat and further in
south in Badampahar hill area. There are numbers of small iron ore deposits are
available in this belt in between Garumahisani – Badampahar are Bhitaramda,
Ghusuria, Purnapani – Bhuyanbasa and Maharajpur etc. Besides these there are
few small considerable float iron ore deposits are located in Mayubhanj district.
The grade of iron ore varies from 60 to 65% Fe with permissible silica and
alumina content.

ii. Bonai – Keonjhar belt: It is the most important iron ore deposit belt which is
extended over 64 x 45 Km area or more. The massive iron ore load occur along
the folded limbs of the synclinorium in a horse shoe shaped, the top of which
contains high grade iron ore deposits. The ore body exposed first near
 Noamundi in Jharkhand state in eastern side and further moves towards south
west up to Malangtoli and then moves towards east and again extended up to
Gua and Nuia in Jharkahand State. In Odisha the eastern limb features Thakurani,
Joda east, Joribahal, Jiling-Langalota, Jajang and Malangtoli like massive deposits
(Fig-2). The western limb features Kiriburu, Bolani, Kalta, Barasua and
Khandadar, Khajurdihi deposits.

Fig - 2

(Generalized structural map after Jones 1934, Ghosh and Mukhopadhay,2007)

GSI found after decade of investigation that the major iron ore occurrences
associated with the BIF, formed by supergene process, found restricted to top of
ridges laying above RL 750m are referred to as the High Level Iron Ore. The
other type, hosted by Upper Shale horizon, occurring in close association with
Manganese ore and confined to the valley areas between RL 400 and 650m, are
termed as the Low Level Iron Ore, in this set up the iron ore occur as isolated
patches in shale/phyllite country in the central part of the syncline from north
of Koira to Bhadrasahi.

The iron ore occur in this belt is usually massive, hard, compact and steel grey to
dark and brownish black in colour. The different varieties include (i) hard ores,
 (ii) laminated moderately hard ore, (iii) soft flaky , friable and powdery ore (blue
dust) and (iv) lateritic ores. Apart from these a large part of haematite bearing
rocks are weathered on the surface, giving rise to occasional pockets of limonitic
ore, but are generally lateritized yielding large capping of laterite and /or Kanga.

The local stratigraphy of Bonai – Keonjhar belt after Saha and Sarkar is

Kolhan Group Newer Dolerite

Sandstone with shale bands

……………….. Unconformity…………………………………………….
Mafic lavas
Singhbhum Granite

Upper shales with volcanic pockets of

manganese ore, dolomite and mafic lavas.
Iron ore Group BHJ with iron ore, cherty ferruginous
quartzite.
Lower phyllitic shales with acid tuffs

iii. Gandhamardan Belt: It is an isolated patch of iron ore deposit with similar
kind of litho units as of Jamda – Koira belt. The depositional area is extended
over 3sq km. It rests around high relief geomorphic unit of Gandhamardan pahar
at the south eastern end of synclinorium of Bonai- Keonjhar range.

The area consists with rocks of Iron ore group like BHQ,BHJ, phyllite, shale with
intercalation of lava flow and few intrusions of dolerite and gritty quartzite.
Structurally the area is folded into series of asymmetrical or slightly overturned
anticlines and synclines. The rocks have NNE-SSW strike with generally westerly
dip. There are three numbers of mining leases are existing in this region.

The various types of ore found are massive, laminated, shaly, powdery and
Micaceous ore. Fe content is generally +63% and it is hard and massive in nature
and gradually become soft at depth. The Stratigraphic sequence of rocks are

Kolhan Group Newer Dolerite

Sandstone with shale bands
……………….. Unconformity…………………………………………….
Mafic lavas
Phyllitic shale and tuff.
Iron ore Group ferruginous chert
BHJ with iron ore
iv. Tomka – Daitary belt: The potentiality of iron ore mining in this region was
brought to light by the State Directorate of Mines during 1957-58 and 1962-63
respectively. The deposit is widely separated outcrop towards south-east of Bonai
– Keonjhar iron ore belt. Stratigraphically IOG of rocks are overlain and
underlain by metapelites and capped with recent lateritic soil. The ore body
extends for a strike length of 1400 meters. The reserve was initially estimated as
50 million tonnes having an average iron ore content of 61.50% was proved upto
a depth of 110 meters.

The ore of Daitari is hematite and laminated type iron ore. Occurrence of blue
dust has been recorded. Lump recovery is estimated to be around 50%. A
mechanised mine including ore processing plant was commissioned by OMC in
1974 for production of annually 1.2 million tonnes of washed lump and fines.
The stratigraphy of the area is

Alluvium
Newer Dolerite
Granite (SBG – B)
…………………………….…………………………………………….
Metalavas
BHJ (with iron ore)
Iron Ore Group Ferruginous chert, ferruinous shales
Carbonaceous shales, phyllites and tuffs
Orthoquartzite .
Metalavas
Conglomerate (impersistent)

v. Hirapur belt : It has been long since the iron ore of Hirapur area has come to
public notice. But there has been substantial ambiguity about the nature and origin
of the iron ore in the area. The area is located in the Umarkote Tahasil & Block of
Nabarangpur district. The area is having very rugged and undulating topography
represented by the Podagurha hill range which extends broadly in an East- West
direction.
The iron ore found in the area is associated with the metabasic rocks. The ore is
of secondary nature and derived from the metabasic rocks.
The ore is mainly Geothitic with a grade of around 58% to 62% Fe content and
traces of haematite , limonite and magnetite ore also observed at some
locations. The iron ore is found on the northern slopes of the Hirapur hill range
and occurs as a layer of about 2m thickness in the weathered horizon of
metabasic rocks.
RESERVE AND RESOURCES OF IRON ORE
Haematite and magnetite are the most important iron ores occur in India. About 59%
haematite iron ore deposits are found in the Eastern Sector while 92% magnetite ore
deposits occur in Southern sector, especially in Karnataka.
As per UNFC system, the total resources of haematite as on 1.4.2010 are estimated at
17,882 million tones of which 8,093 million tonnes (45%) (IBM, Indian Minerals Yearbook
2014, Dec, 2015) are under ‘Reserves’ category and balance 9789 million tonnes (55%) are
under ‘Remaining Resources ‘ category.
Major Reserve and resources of Haematite iron ore in states as per IBM is shown as
Reserve and remaining resources of Haematite ore (in million tonnes) as on 1.4.2010

States Reserves in Mt Remaining Resources in Mt Total in Mt

Andhra Pradesh 152.217 229.261 381.478
Chhattisgarh 900.110 2391.714 3291.824
Goa 469.844 457.328 927.172
Jharkhand 2304.142 2292.478 4596.62
Karnataka 876.866 1281.811 2158.677
Madhya Pradesh 56.814 174.632 231.446
Maharashtra 13.414 269.795 283.209
Odisha 3313.000 2617.232 5930.232
Rajasthan 7.139 23.420 30.559
Assam --- --- 12.600 12.6
Bihar --- --- 0.055 0.055
Meghalaya --- --- 0.225 0.225
Uttar Pradesh --- --- 38.000 38.00
TOTAL 8093.546 9788.551 17882.097

Meghalaya
Assam 0%
0% Andhra Pradesh
Uttar
Rajasthan Bihar 2%
Pradesh
0% 0% 0%
Chhattisgarh
19%
Odisha
33% Goa
5%

Statewise % of
Maharashtra sharing of
2% Madhya Pradesh Hematite ore in India
1% Karnataka Jharkhand
12% 26%
Among the states, Odisha recorded the highest deposit of haematite iron ore and in
production supplying almost 50% of the country’s production in 2013-14. In Odisha GSI has
estimated district wise reserve of iron ore with grade are as follows:
District Reserve in million tonnes Grade range (%of Fe)
Jajpur 46 63- 65
Keonjhar 2555 63- 66
Sundargarh 742 60- 64
Mayurbhanj 15 60 - 65
Nawarangpur 2 60- 62
On the basis of exploration report of different institution, reserves estimated during
preparation of Mining Plan and time to time data published by Directorate of Mines Govt. of
Odisha, GSI, IBM and exploration done by different Govt. department in between 1950 to
2009, the iron concentration at different location/ Lease in district wise estimated reserve (
non UNFC) are shown in following table.
District Location Total Status Reserve in Grade
Blocks Million Av. Fe %
tonnes
Jajpur Daitari 1 OMC 40 63-65
Tomka 1 OMC 10 63-64
Keonjhar Gandhamardan A&B OMC 253 63 -65
Bolani 1 SAIL 324 63 -63
Thakurani- A 1 Freehold 115 63-65
Thakurani- B 1 Sarda Mines 270 63-65
( Sarda mines)
Joda east 1 TISCO 210 64-66
Khandbondh 1 TISCO & OMC 132 64-66
Jilling 1 ESSEL Mining 88 64-65
Jajang 1 Rungta & 121 64-65
Others
Jaribahal 1 B.D Patnaik 8 64-66
Katamati 1 TISCO 55 63-65
Malagtoli 13 Freehold 608 63-65
Others leasehold 210 62-65
Sundargarh Mankarnacha Patraposi Freehold 176 62-64
Baliapahar Freehold 136 62-64
Badamgarh Miturda Freehold 80 62-64
Diringburu freehold 110 62-64
Khandadhar group OMC 100 62-64
Barsuan - Kalta SAIL 232 60-63
Others Leaseholds 100 + 60
Mayurbhanj Garumahani G.S Mishra 7 63-64
Sulaipat B.C Dagara 1.5 65-66
Badampahar Lal Traders 5 60-62
Others Leasehold 1.5 62-65
Nawrangpur Hirapur Freehold 2-5 60-62
 The reserve of different leasehold being depleted by year to year hence the updated reserve
of iron ore in Odisha state as on April 2016 is :
Name of the Depletion of Reserve of iron ore since year 2010 (in million tones Mt)
State 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total Available
As on 1st April Reserve after
2016 1.4.2016 in
Mt
Odisha 76.128 67.414 64.439 76.227 53.66 80.86 418.728 2894.272

Source: Ministry of Mines Govt. of India, IBM, JPC, Ministry of Steel. Concerned State’s Govt.& Business standard

The State is currently produces around 70 million tonnes of iron ore annually, which will be
increase on account of demand by the development of steel industry and due to capacity
addition in existing industries. At present capacity of production of different semi-
finished / finished steels in the state is around 14.924 million tones. The sectoral
distribution of iron and steel industries in Odisha are shown as in table-

Sl. No. Major Industrial Sectors Annual Capacity in Mtpa

1 Integrated Iron and steel 2.7
2. Pig Iron 1.3
3. Sponge Iron 10.29
4. Ferro Alloys Plant 0.63
Total 14.92Mtpa

In next five years numbers of green field steel plants/ expansion of brown fields will be
added another 27.2 million tonnes in the above list . As per the report of Govt. of Odisha
from 2020 onward the capacity of steel making in Odisha will be around 42.12Mt per
annum. Details of proposed quantum of addition in capcity by various industrial houses are
shown as :
SL no. Name of the Plant / Expansion Capacity in Million Tonnes/
annum
1. Tata Steel 6.0 Mtpa (3.0 x 2)
2. JSW 6.0 Mtpa
4. Essar steel 4.0Mtpa
5. JSPL 2.0Mtpa
6. Visa Steel 1.5Mtpa
7. Rourkela Steel Plant (Expansion ) 2.5 Mtpa
8. Bhushan Steel strips 1.2 Mtpa
9. Others under expansion 2.5 Mtpa
10. Sunflag I & SW 1.00 Mtpa
11. Others under expansion 3.00Mtpa
12. Existing 14.92 Mtpa
TOTAL 42.12 Mtpa
Source: Industry department Govt. of Odisha , Ministry of steel etc.
 EXPLORATION POTENTIALITY FOR LOW GRADE
IRON ORE IN ODISHA.

Even though Indian steel industry passing through a bad phase the finding of study by
National Council of Applied Economic Research (NCAER), Sep 2015, suggest that a better
day is ahead because
- The steel sector in India has very high potential. Indian steel industry is quite
young compare to other developed countries. India as a late comer has the
advantage of leapfrogging to the latest technology that is efficient and eco-
friendly.
- India has potential market for steel, per capita consumption of steel is still low
compare to other countries and scope of growth is promising with steady growth
in GDP.
- Odisha is the most suitable place to flourish steel industry because of its huge
reserves of raw materials like, high grade Iron ore, Coal, Limestone and Chromite
for making quality steel production for long period and well connectivity to port.
In India, 80% of steel making is through blast furnace route and hence the role of iron ore
as a raw material became very critical. Development of steel industry in Odisha or in any
neighboring state means depletion of exiting estimated reserve of iron ore rapidly.
Therefore, Govt. of India and State Govt. both have already stared prospecting of new areas
to explore new reserves of iron ore in the State. Indian Bureau of Mines has already notified
to bring down threshold value of iron ore as +45% Fe content , by taking such measures
now another scope has been developed to find areas of low grade iron ore those were
excluded in past from the list of future exploration.
A number of iron ore belts are still left to be examined and no formal resource assessment
has been attempted in past. Odisha has numbers of potential areas to conduct further
exploration for low to high grade iron ore . In resent GSI has identified few potential area
and conducted G4 level exploration while many of areas are still to be identified.
Beside low grade iron ore, considerable quantity of Titaniferous – Vanadiferous Iron ore
available in Mayurbhanj, Keonjhar and Balasore district. Few of the area were initially
prospected by the State Directorate of Mines. The Ti-Vi iron ore occurs in gabbro –
anorthosite suite of rocks which runs along the Rairangpur – Bisoi road and again from
Bisoi to Joshipur and extended up to Thakurmunda – Noto pahar along the periphery of
Similipal forest in Mayurbhanj district. The similar ore veins are marked at Rangamatia and
Betai in Balasore district. In Keonjhar district a considerable area has been identified as a
potential area for the prospecting of low grade iron are which located near Nipnia in
Harichandanpur and extended up to Kantapal of Jajpur district. Another low grade iron ore
area has been identified in between Palalhara and Talcher. In North – Western part of
Tomka – Daitari belt around Burhipada – Madhyapur in Keonjhar district , two massive hard
laminated iron ore bands were identified having Fe content varying from 64.88% to 66%.
In recent Govt. of India has initiated to frame out policy for exploration of virgin area by
private entrepreneurs through competitive auction which may be published in Gazette of
India very soon.
Odisha Govt. has already approved its Mineral Exploration Policy,2015 and has notified in
Gazette vide N0.6065- IV(Misc.) SM-100/2015/SM dated 4th of July, 2015 and listed few
potential areas for further G2 level exploration for iron ore as listed below.
SL No Name of the Mineral Area in sq. Agency that Level as per Resources in
Block km conducted UNFC million
the tonnes
Exploration
1. Thakurani –A, 4.94 GSI G4 187
Keonjhar district
2. Horomoto, 2.07 GSI G4 61
Keonjhar district
3. Badamgarh Pahar, 10.72 GSI G4 80
Sundargarh district
4. Dolta Pahar, 0.6 DG (O) G3 15.808
Sundargarhdistrict
5. Kalmang West Block, GSI G3 33.78
Sundargarh district
6. Mithirda - Basada, 2.81 DG (O) G3 + G4 150
Sundargarh district
7. Jumka, 2.995 GSI G3 98
Sundargarh district
8. Mandajoda , 1.93 DG (O) G4 17.47
Sundargarh district

Beside the above list once the National Exploration Policy will be approved numbers of
potential areas for prospecting of iron ore will be available in Odisha.
References:
Acharya, S (1976) : Iron Formation and Iron ores of Orissa, their stratigraphy and
correlation, Proc Symp Geol etc. Ferrous and Ferroalloy
Minerals, Bangalore.
Acharya S (1984) : Stratigraphy and structural evolution of the rocks of iron ore
basin in Singhbhum – Orissa Iron Ore Province, India ,IJES,
CEISM, Vol II.
B Satpathy, D Berua : Establishment of Lithostratigraphy of some Banded Iron
Formations of Iron Ore Super group of Odisha, India, IJEIT ,
Vol. 2 Issue 7, Jan2013.
S.N Sarkar and A.K Saha: The present status of the Precambrian stratigraphy, tectonics
and geochronology of Singhbhum- Keonjhar – Mayurbhanj
region, Eastern India, Indian Journal of Earth Sciences , S. Ray
Volume,1977.
H.C Jones (1934) : The iron ore deposits of Bihar and Odisha, Geological Survey
of India Memoir, Vol 63. 1934.
GSI (2006) : Report on Prospecting for Low level Iron Ore deposits within
the Iron Ore Group rocks of Sundargarh and Kendujhar
districts, Orissa (P-II).
GSI : Mineral Resources of Orissa p-163-175.
GSI : MISC. PUB. NO. 30(III)
Indian Mineral Year Book 2014: 53rd Edition, Iron ore (Advance release) , IBM, Govt. of
India.
Geology and Mineral Resources of Orissa (1998): Society of Geoscientists and Allied
Technologists. And various published and unpublished
reports of GSI, IBM, DMG (Orissa) and researchers.
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