Bihar is emerging as a potential hub for rare earth elements and critical minerals, prompting the state government to step up exploration efforts and prepare for commercial mining. Mines and geology minister Pramod Kumar outlined the current status and future plans in an interview.
Current Status of Rare Earth Exploitation
The central government floated tenders for the auction of four blocks: the Sapneri vanadiferous-magnetite block in Gaya, the Shahpur-Akbarpur glauconite block in Rohtas, the Nawadih glauconite block in Rohtas, and the Tipa glauconite block in Rohtas. The last date for submission of bids was May 20. Technical and financial bids are likely to be opened soon.
Upcoming Auctions and Revenue Prospects
The state government is processing the auction of the Majos and Bhanta combined magnetite block in Jamui and the Pindara copper-lead-zinc block in Banka. The e-auction of the Patalganga vanadiferous-magnetite block in Jehanabad and the Gaya-Aurangabad tin-tungsten and rare earth block at Dhanras has been proposed under Tranche VIII of the Union ministry of mines. Once all blocks become operational, the state will receive substantial revenue through auction premiums, royalty, district mineral foundation funds, income tax, and GST. Estimated income from only three pyrite and limestone blocks in Rohtas district over the next 50 years is around Rs 6,000 crore.
Economic Impact of New Minerals
Potash-bearing glauconite will primarily be used in fertilizer manufacture. Nickel will support battery and aerospace sectors. Chromium will be utilized in stainless steel and refractory industries. Platinum group elements will find applications in petroleum refining and electronics manufacturing. The development of these mineral resources is expected to support industrial growth, create employment opportunities, and strengthen Bihar’s contribution to emerging sectors linked to clean energy and advanced manufacturing.
Department Revamp for Exploration
Following the recent discoveries, the department has created a separate directorate of exploration for effective execution of future exploration and mining activities. Geoscientists and geotechnical experts from both central and state governments are being deputed to this directorate. The directorate will be further strengthened through appointment of additional qualified experts, procurement of advanced exploration equipment, and if required, establishment of a dedicated exploration laboratory.
