By Our Correspondent in Bhubaneswar, February 7, 2015 : The Odisha government managed Industrial Development Corporation of Odisha Limited (IDCOL), on Saturday signed a Memorandum of Understanding (MoU) with Indian Rare Earth Limited (IREL), a Government of India Undertaking, for mineral exploration and setting- up of a Mineral Separation Plant in Ganjam district at a cost of about Rs 450 crore.

Idcol chairman and managing director [CMD], Vishal Dev and IREL CMD R.N.Patra signed the MoU in the presence of industry minister Devi Prasad Mishra, chief secretary, Gokul Chandra Pati.

The project as a part of Idcol’s plan to diversify its activities will be implemented through a joint venture company.. “It is a new activity for IDCOL and the project will be implemented through a JV Company to be promoted by IDCOL and IREL,” Vishal Dev said on the sidelines of the signing of theMoU.

IDCOL will have equity shareholding up to 49% and IREL will have minimum of 51% in the Joint Venture Company. The project will be completed in two years.

IDCOL has applied to the state government for grant of prospecting license and mining lease of Beach Sand over an area of about 6000 hectares in different villages along the coast in Ganjam district. Initially it has planned for Beach Sand mining over an area of about 1257.03 hectares.

Odisha with a coast line of about 470 kilometres boasts an estimated reserve is more than 100 million ton of beach sand heavy minerals which remains mostly untapped.

In the last Budget session of the Assembly held in July, 2014, industry minister, had indicated floating of a joint venture project for value addition of the beach sand abundantly available on the coast in south Odisha.

IDCOL has roped in IREL, as a JV partner which has experience in mining and separation of heavy minerals like Limonite, Monazite, Zircon, Rutile, Garnet and Sillimanite from Beach Sand and also production of rare earth and thorium compounds.

IREL has Mineral Separation Units in Kerala, Tamilnadu and Odisha.

The proposed project envisages Beach Sand mining and mineral processing to produce Limonite, Garnet, Sillimanite, Rutile, Zircon and Monazite. The Mineral Separation Plant will be set-up near the village of  Gokhurpada, Mayurpada, Kontiagarh and Prayagi in Ganjam district, official said.

The project is expected to create employment opportunity for about 400 people in different categories and equal number of indirect employment. It will also attract downstream units in the area industry minister Mishra said.

“The area appears to be promising for mining of heavy minerals. But clearance from statutory authorities will take a lot of time and IREL will extend all support to the success of the project”, Patra remarked.