Introduction
The campaign for separate
state by the people of tribal dominated southern part of
erstwhile Bihar culminated in November 2000 with the creation of
Jharkhand by reorganization of Bihar. Ranchi is the capital
of the new state which is spread over 79,714 sq.km.Jharkhand forms a distinct
region of erstwhile Bihar. In the process, Jharkhand is in an advantageous
position over Bihar, having inherited with rich natural resources including
minerals of the total districts in Bihar, 18 districts are included in
Jharkhand. These districts are Bokaro, Chatra, Deogarh, Dhanbad, Dumka, Garwa,
Giridih, Godda, Gumla, Hazaribagh, Koderma, Lohardaga, Palamau, Pakur, Ranchi,
Sahebganj, Singhbhum West & Singhbhum East.
These districts fall under
former South Bihar which is distinctly separated by plains of North Bihar. The
Jharkhand is dotted with several major deposits of principal minerals and is now
one of the leading producers of minerals in the country. Almost all the major
mining projects, processing units, mineral based industries are with Jharkhand.
If the rich mineral assets are properly exploited and utilised, the mining
sector will contribute significantly to the economy of the new
state.
General Geology
The state of erstwhile Bihar stretches from Himalayan
foothills in north to the hill ranges on the border of Orissa in south. The most
striking geographical feature of Bihar is the sharp division between north and
south. The northern part is nearly a plain tract while the southern part is
wooded and hilly. In other words, physiographically the state can be divided
into (i) Chotanagpur plateau region of central and south
Bihar and (ii) the Gangetic plains of north Bihar. Out of the total area
of about 1,72,000 sq.km. about 80,000 sq.km. is covered by Gangetic plains and
92,000 sq.km. by hard rocks in the south. This former south Bihar is now carved
out as new Jharkhand state.
The Archaean metamorphites with associated
intrusives, and the sedimentaries belonging to the Vindhyan and Gondwana systems
and the associated intrusives and extrusives comprise the most prominent rock
types in these states, the Jharkhand in particular.
The Archaeans are
represented by various types of schists, gneisses, granulites, quartzites,
metabasic intrusives and granites; the Vindhans by quartzites, limestones,
conglomerates, sandstones, and the Gondwanas by shales and sandstones with a
number of intervening coal seams within them.
Structurally the plateau region
represents a part of peninsular Shield. The Archaean metamorphites in Singhbhum
area are represented by unmetamorphosed facies in the south and metamorphosed
facies in the north. These two are separated by a prominent shear zone running
for more than 160 km. This thrust Known as 'Singhbhum Copper
Shear Zone' is the store house of several rich mineral deposits. The
Jharkhand state is mostly represented by the above hard rocks which include the
Singbhum shear zone.
Mineral Resources
Jharkhand is now one of the few states in the country endowed with rich
deposits of several principal minerals. The Jharkhand state, carved out from
Bihar, chiefly encompasses the districts in south Bihar, majority of the mineral
assets invariably come under the possession of the new state. Some of these
major deposits include apatite along Singbhum Shear belt, asbestos, chromite,
manganese ore, kyanite in Singbhum district; barytes in Singhbhum, Ranchi and
Palamau districts; bauxite in Gumla, Lohardaga, Palamau, Ranchi districts;
chinaclay in Hazaribagh, Palamau districts; fireclay beds associated with coal
seams in Dhanbad, Hazaribagh districts; copper ore of well-known Singhbhum Shear
belt, feldspar associated with mica in Kodarma, Hazaribagh, Singhbhum districts;
graphite in Palamau district, iron ore associated with Iron Ore Series in
Singhbhum, Palamau districts; limestone &. dolomite belonging to the
Vindhyans and the Archeans in Palamau, Hazaribagh, Ranchi, Singhbhum districts;
mica from well-know 'Bihar mica belt' in Hazaribagh,
Giridih, Koderma districts; ochre from Ranchi district; quartz/silica sand from
Dhanbad, Hazaribagh, Dumka districts; steatite from Dhanbad, Hazaribagh, Ranchi,
Singhbhum districts; well-know Jaduguda uranium and vanadium in Singhbhum
district.
As per the national mineral inventory, the recoverable reserve
estimates of various minerals in Jharkhand state are tabulated in Table-I. The state has significant resources of apatite,
asbestos, barytes, bauxite, chinaclay, chromite, copper ore, dolomite, fire
clay, garnet, granite, graphite, iron ore, kyanite, manganese ore, quartz/silica
sand, talc, titanium , minerals and vermiculite. Besides, the important uranium
deposit also falls under the jurisdiction of Jharkhand.
Mining
Out of the 18
districts brought under the governance of Jharkhand, exploitation of minerals is
carried out in all except Chatra, Garwa, Godda and Pakur districts. Of these,
extensive mining is done in Singhbhum East & West, Palamau, Lohardaga, Gumla
and Hazaribagh districts. The other districts where active mining is carried out
are Deogarh, Dhanbad, Dumka, Giridih, Koderma, Ranchi and Sahebganj. There are
about 330 mines reporting production.in Jharkahand. Naomundi, Kiriburu and
Meghahataburu iron ore mines ofTata Iron & Steel Company (TISCO) and Steel Authority of India Ltd. (SAIL) in Singhbhum (west) district, Mosabani group of
copper mines of Hindustan Copper Ltd. (HCL) in
Singhbhum (east) district, Tulsidamar dolomite mines of SAIL in Palamau
district, Bagru Hill bauxite mines of Indian Aluminium Company in Lohardaga
district are well developed semi-mechanised/mechanised mining projects.
Limestone mines in Singhbhum (west), Palamau, Hazaribagh districts; silica sand
mines in Sahebganj district, mica mines in Koderma and Giridih districts,
fireclay workings in Palamau and Dhanbad districts; kaolin mines in Singhbhum
(west) district, graphite mines in Palamau district are the other important
mining centers in Jharkhand.
Amjhore pyrite mines of PPCL in Rohtas
district, quartzite mines of Bum Standard Company Ltd. in Monghyr district and
some captive limestone mines in Rohtas district are some of the major mines left
with present Bihar. Mineral Prodcution Undivided Madhya Pradesh and Bihar were
the leading producers of minerals in the country, contributing about 16% and 12%
(during 1999-2000) respectively in value of mineral production of the total all
India production. The Jharkhand state nearly replaces Bihar from its prime
position. Jharkhand is now one of the leading producer of coal, bauxite, copper
ore, gold, iron ore, manganese ore, silver, dolomite, felspar, fireclay,
graphite, kaoline, kyanite, ochre, quartz, silica sand and laterite. Yet total
production of pyrite and nearly half the production of limestone and quartzite
is now with Bihar. Maximum number of minerals are produced from Singhbhum East,
Palamau and Hazaribagh districts. Copper ore, gold and kyanite are exclusively
produced in Singhbhum East district. Maximum output of iron ore, manganese ore,
limestone, ochre is from Singhbhum West district. Entire production of bauxite
from the state is reported from Gumla and Lohardaga districts. Palamau district
accounts for total production of dolomite and graphite. Sahebganj district is
the leading producer of silica sand and kaolin. Silver is recovered from
Hindustan zinc Ltd's (HZL) Tundoo smelter. Fireclay is chiefly produced in
Palamau district. Feldspar is produced in Hazribagh, Deogarh and Palamau
districts. Jharkhand, now turns out to be a leading producer of coal (25%),
silver (23%), iron ore (16%), copper ore (7.6%), mica (25%), kyanite (90%), gold
(18%), bauxite (18%), graphite (10%), and dolomite (9%) in the country. The
contribution of coal in the total value of mineral production the state is 88%
followed by iron ore 5%. Quantity & value of mineral production during
1999-2000 is given in Table - II. It is, therefore, apparent from the mineral
production pattern that royalty accruals fromJharkhand would significantly
contribute to the state's economy.
Mineral
Based Industries
As the present state of Bihar parted away with rich
and major mineral deposits to the Jharkhand state, so also the case with mineral
based industries. The core sector, labour intensive and the pride possession
ofJharkhand are the two integrated steel plants - SAIL's Bokaro plant and
TISCO's Jamshedpur plant, which account for about 42% of capacity and production
of steel in the country. These establishments, besides providing employment
contribute significant revenue to the exchequer. Further, a host of down stream
industries will come a long way towards a healthy economy. The copper ore
concentrator of HCL at Mosabani and matching smelter at Ghatsila are the major
establishments contributing, about 25% & 22% of copper ore treatment and
copper production in the country. Besides copper metal, by-products like gold,
silver, selenium, tellurium and nickel -sulphate are recovered from the smelter.
These amount to considerable quantities in the country's output
The oldest
and the leading lead-zinc smelter of HZL at Tundoo in Dhanbad district produces
over 4500 tonnes of lead ingot which contributes 16% of the production in the
country. The plant has 8000 tonnes per year capacity. It treats the concentrates
generated from Rajasthan. Tin Plate India Ltd's plant at Golmuri in Singhbhum
(East) district is another important unit engaged in production of base
metals.
The coal based sponge - iron units of Bihar Sponge Iron Ltd. at
Chandil and IPITATA's plant at Jamshedpur under joint sector are two recently
commissioned plants in Singhbhum (East) district. Similarly, another two newly
established alloy steel plants - Bihar Alloy Steel Ltd's unit at Balkundra in
Hazaribagh district and Usha Martin Industries Ltd's unit at Jamshedpur are
underJharkhand.
Another important industry is the refractory. There are about
30 units, all in Jharkhand, under organised sector. These units produce
different kinds of refractories required for ferrous, non-ferrous metallurgy and
for cement plants. Both public and private sectors are engaged in operation of
these units. Of these, majority of plants are located in Dhanbad and Hazaribagh
districts and the remaining in Singhbhum East and Giridih. Some of the major
units include Burn Standard Co. at Mugma (Dhanbad Distt.) ; Bharat Refractories
Ltd. at Bokaro, Bhandaridih (Giridih distt) and Marar (Hazaribagh distt); Bihar
Firebricks and Potteries at Mugma; Valley Refractories at Chirkunda (Dhanbad
distt); India Firebricks & Insulation Co. at Marar; Tatanagar Refractories
& Minerals Co. at Gamaria, Singhbhum East and Steel Authority of India Ltd.
at Marar. Bharat Refractories Ltd. has recently diversified into range of
sophisticated refractories in collaboration with Japan.
Mica Trading
Corporation of India Ltd. has four mica based plants under operation and has
proposals to set - up one more plant to manufacture calcined and thermochemical
grade mica paper. The four units are - (i) Silvered mica and mica capacitor
plant at Makatpur (Giridih), (ii) Micronised mica paper plant at Abhrakanagar
(Hazaribagh), (ill) Mica powder plant and (iv) Mica paper and splitting based
insulating material project. Besides these, all the 13 micanite units are in
Giridih and Hazaribagh districts. These units contribute significant output in
the country's production.
Out of seven large cement plants in erstwhile
Bihar, Associated Cement Company's Chaibasa unit,Japia Cement Plant of
Sonevaller Portland Cement Company, Khilari Cement works and TISCO s plant in
Singhbhum come under Jharkhand with 66% of total cement capacity in the
erstwhile Bihar. Hyderabad Industries l.td's plant producing asbestos products
atJaisidih in Deogarh district is one of the few such plants in the
country.
Besides the above, there are other units in Jharkhand producing
alloys/special steel, chemicals, glass, ceramics, plaster of paris and several
coal washries and coke oven batteries. Prospective Areas of Development As
mentioned above, Jharkhand is endowed with rich mineral resources, and several
of these are under active exploitation. Different large and medium scale
industries are already in operation in the new state. Except mining, agriculture
and other sectors are poor in the districts of Jharkhand. Although mining in the
area is carried-on on a considerable scale, some more projects in the state can
be taken up to enhance production capacities. Some of such areas for future
development are discussed below.
With the adoption of new Industrial Policy
in July 1991, the Govt. has liberalised the economy for rapid industrial growth.
Under this, a host of structural reforms have been purt forth by the Govt. to
encourage private participation including mining. The on-going liberalisation
process may facilitate materilization of some of these projects.
Iron Ore (Haematite)
Recoverable haematite
reserves of iron ore (haematite) are placed at 2655 million tonnes in Jharkhand.
Presently around 12 million tonnes of ore is produced for steel mills and other
purposes. At the present rate of production the reserves will last for over 200
years. India is a traditional exporter of iron ore. It exports about 30% of the
output to different countries. There is, scope for enhancing existing production
capacities for exports. Besides iron ore, other minerals (fuel, flux,
refractory) required for sponge iron/steel plant are locally available. In this
backdrop, possibilities of setting up additional capacities for sponge iron,
steel intermediatory products under private/joint sector can be explored.
Magnetite
Recoverable reserves of
magnetite are estimated at over 5 million tonnes in Jharkhand. But this resource
has not yet been exploited. Possibilities of mining for upgradation to useable
grade in the form of sinters and for use in coal washeries may be explored.
Bauxite
About 66 million tonnes of
bauxite have been estimated in the districts of Jharkhand state. The current
production of bauxite is little over a million tonnes. The output is chiefly
consumed for recovering alumina/aluminium and in manufacture of refractories.
M/S Indian Aluminium Co. (INDALCO) is the only plant in the state. Though there
are about 30 refractory units in the state, their consumption of bauxite is not
much. India currently is one of the major exporters of alumina and there is
scope for further increase in the world market. The domestic demand for
aluminium is expected to increase many fold in future. As coal is locally
available in plenty for setting up a captive thermal power plant, installation
of another plant in private sector with collaboration to produce alumina for
export may be looked into.
Copper
The current
production of copper in the country is insignificant and the requirements are
largely met through imports. Mosabani group of mines in Singhbhum district is
one of the major production centres. There are several medium and small deposits
around these mines which await exploitation. There appears to be a scope for
increasing capacities from operating projects and developing new mines in the
vicinity of existing mines by additional capital and technology inputs.
Captive coal mining linked to power generation
Under the on-going liberalization of the economy, coal mining under
private sector is allowed for development of captive sources of supply to
thermal plants, cement and steel plants etc. The coal based thermal power
generation capacities continue to have the maximum share in the country's power
generation. As the state is endowed with significant coal deposits, there is
ample scope for investing in the captive coal mines linked to power generation.
Granite
India is now a leading
exporter of granite in the world market and it is considered as an important
thrust area for foreign exchange earning to the country. Exploitation of granite
on commercial scale is yet to start in jharkhand area. There are prospects for
private/foreign investment for quarrying and setting up of cutting and polishing
plants.
Feldspar
Potential feldspar
resources are of the order of 1.2 million tonnes in Jharkhand. The current
production, from these distIjcts is around 5 thousand tonnes. H. T. Insulators
Ltd. in Ranchi district is the only ceramic unit in organised sector utilizing
feldspar. More ceramic units in medium scale sector can come up in the state.
Limestone
Potential deposits of
limestone are available in the districts like Hazaribagh, Giridih, Singhbhum,
Palamau etc. in Jharkhand state. Out of 965 million tonnes of recoverable
reserves in pre-partitioned Bihar, 511 million tonnes or 53% is accounted by
these districts. Limestone is presently mined in Hazaribagh, Palamau, Ranchi and
Singhbhum (west) districts for use as flux in ferrous metallurgy and for
manufacture of cement. India has emerged as a leading producer of cement in the
world and it also entered the export market. Internal demand for cement is
expected to rise in the future due to planned major infrastructural development
activities. At present, four major cement plants are in operation in districts
underjharkhand. As fuel in the form of coal is available near-by, additional
capacities for cement and also lime based chemical plants can be set-up in
different areas in the state.
Conclusion
Jharkhand is formally carved out from Bihar yet it remains one of the
leading mineral producing states in the country. The new state is endowded with
rich mineral resources and occupies unique position in, mineral production, and
mineral based industries. Thus jharkhand is comfortably placed compared to other
states in the eastern mineral sector. Jharkhand would, therefore, be gaining a
lot through mineral sector. By proper planning, rational and liberal attitude
and by taking advantages of liberalization measures initiated by the Govt. of
India, considerable development can be anticipated in the state and in its
backward districts in particular to bring all round prosperity in the
state.