Chhattisgarh bets on critical minerals, tribal tin and e-auctions to boost mining revenue

RAIPUR: Chhattisgarh is banking on critical minerals, tribal-led tin mining and transparent e-auctions to ramp up revenue and jobs, mining secretary P Dayanand said on Thursday, outlining a tighter, tech-driven regime for the state’s mineral resources.He said more than 28 types of minerals are found in the state, with blocks prepared and auctioned for exploration and mining, leading to a “notable rise” in revenue over the last two years.Briefing the media about the status report of mining in state, Dayanand said, Chhattisgarh mineral development corporation (CMDC), set up in 2001, is now central to this push and is currently active in nine minerals – tin, bauxite, iron ore, copper, diamond, manganese, corundum, dolomite and coal.Tin as ‘critical mineral’, lifeline for Bastar tribalsDayanand said tin — classified as a critical mineral — has become a key livelihood source for scheduled tribe communities in Bastar, with CMDC directly purchasing tin ore from tribal miners.“In the last two years, we have focused on giving correct and timely prices to ST sellers,” he said. The purchase rate for tin ore has been raised to ₹1,926 per kg, roughly three times the earlier level, sharply increasing tribal incomes and volumes sold.A dedicated TIN (Tribal Incentive for Natural Resources) online portal is being developed to enable real-time digital payments to beneficiaries.CMDC, in collaboration with MOIL, is carrying out exploration for manganese and graphite in Balrampur district with “encouraging” results, he said. An MoU has also been signed with Coal India for joint exploration and mining of critical minerals, backed by a joint working committee.“This is not limited to mining. It includes mineral processing, technical cooperation and skill development for youth,” Dayanand said, adding that the initiative is expected to generate employment and build local capacity.Dayanand said that CMDC has adopted a transparent, technology-enabled e-auction system through MSTC for mineral tenders and sales.“In iron ore, we have received record high sale prices and competitive mining rates, showing the success of transparent e-auctions,” he said.From the Aridongri iron ore mine alone, the state earned about ₹28.65 crore in revenue last year, while CMDC posted a net profit of nearly ₹24 crore. The mine supports over 200 direct and indirect jobs, and a plan is in place to raise its capacity from five lakh tonnes per year to 20 lakh tonnes.Bailadila, diamond and coal projectsAmid Dantewada local tribal groups had staged massive protest against proposed mining project on Bailadila hills, the CMDC–NMDC joint venture NCL is set to start mining at Bailadila deposits 4 and 13, with production expected in 2026 after finalisation of the raising contractor for deposit 4. At peak capacity, the two projects could generate around ₹7,000 crore in revenue for the state and ₹3,000 crore for CMDC, he said.Reconnaissance in Mahasamund district’s Baloda–Belmundi area has shown indications of diamond-bearing kimberlite, with drilling under way to confirm reserves.On the long-pending Kerwa coal block, Dayanand said an MDO has been selected through transparent bidding at a 15.85% premium. The block, jointly allotted to MPSMC and CMDC, is expected to yield around ₹150 crore to the state and ₹53 crore to the two corporations annually at optimal output.Speaking about the future roadmap, the secretary said CMDC plans to:Raise iron ore capacity to 20 lakh metric tonnes, which could bring about ₹250 crore to the state and ₹768.4 crore to CMDC.Increase bauxite output, adding an estimated ₹10 crore to CMDC’s revenue.Auction lapsed tin mines and fresh mining in 2–3 years.Launch a pilot to extract critical minerals like tantalum and niobium from tin slag.Expand dolomite mining to a 2-million-tonne capacity over three years, potentially earning ₹20 crore for CMDC and ₹32 crore for the state.