Nagpur-based MOIL has signed a tripartite memorandum of understanding (MOU) with the Government of Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited (MPSMCL). As per the MoU, the company will explore the possibilities of manganese ore mining in four districts of the state that is Balaghat, Jabalpur, Jhabua and Chhindwara.
The company stated in its filing that MOIL “carried out detailed remote sensing studies with the help of National Remote Sensing Centre (NRSC) ISRO, Hyderabad.” MOIL is the largest producer of manganese ore in the country and operates eleven mines in the State of Maharashtra and Madhya Pradesh.
Based on study carried out by NRSC, the state-run company has further carried out extensive field work followed by geological mapping, sampling, their petrological and chemical analysis for delineation of manganese ore bearing areas in the site specified by NRSC. Thus, it has asked the Madhya Pradesh government for reservation of the area.
The company stated that in “Madhya Pradesh has reserved 850 Km2 and 487 Km2 areas in Balaghat and Chhindwara districts respectively, under Rule 67 (1) of the Mineral (Other than Atomic and Hydrocarbon Energy) Mineral Concession Rules, 2016 to carry out exploration work. This will enable MOIL to take up exploration projects in the reserved areas of Balaghat and Chhindwara districts”. In the case of other two districts — Jabalpur and Jhabua, applications for those districts are in process. “After completion of the exploration work and its analysis, a Techno Economic Feasibility Report (TEFR) will be prepared. Based on the TEFR and ascertaining viability, a Joint Venture Company will be formed between MOIL and MPSMCL with shareholding of 51 per cent for MOIL and 49 per cent for MPSMCL.
MOIL holds around 34 per cent of manganese ore reserves of the country and is contributing 45 per cent of the domestic production. The company has ambitious vision of increasing its production to 25 lakh MTPA by FY 2025-26 and 30 lakh MTPA by 2030.