State-owned manganese-ore mining company MOIL has announced resources base of 7.65 million tonnes of manganese established in Gujarat under MoU with GMDC. It had signed Memorandum of Understanding (MoU) in October 2019 with Gujarat Mineral Development Corporation (GMDC), an undertaking of Government of Gujarat, to take up project of joint exploration of manganese bearing areas, exploring its feasibility and to conduct mining operations as well as to set up value addition plant in joint venture in Gujarat.    

For exploration and analysis of manganese ore body, a tripartite MoU has also been signed amongst MOIL, GMDC and Mineral Exploration Corporation (MECL). MECL has completed exploratory work in first phase by geophysical prospecting and core drilling over 8200 m. Based on exploratory work of first phase, MECL has established sizeable resources base of 7.65 million tonnes of manganese ore in Pani area. MECL's report suggests availability of the good grade of ore having potential and viability for manganese mining.

To explore the entire area and to establish the structure of the deposit, further exploration activities have also been taken up by MECL. This may generate additional resources of manganese ore from the same area, MOIL said in a statement. MOIL said it is now preparing techno economic feasibility report based on the first phase report of MECL for underground mining operations in the long run. As the property seems to be viable, a JVC will be formed between MOIL and GMDC with shareholding of 51 per cent and 49 per cent respectively, in terms of the MoU already signed.

Based on results of exploration and feasibility of mining ascertained after exploration activities, decision to go ahead with mine development, mining activities and establishment of downstream derivative plants with an expected investment of about Rs 250 crore will be taken, MOIL added.