Nagaland rich in mineral deposits

Our Correspondent
Kohima | July 24

Nagaland, a state in the eastern part bordering Myanmar is endowed with substantial deposits of minerals. The main established mineral reserves comprise of petroleum and natural gas (prognosticated reserve of 600 million tonnes), limestone and marble (inferred reserve of 1000 million tonnes), magnetite with nickel, cobalt and chromium (5 million tonnes proved so far), coal (inferred reserve of 150 million tonnes and deposits of varieties of decorative and dimensional stones. The said minerals and other associated metal like zinc, molybdenum and possible precious metals such as gold and platinum groups in the eastern parts of Phek, Kiphire and Tuensang districts and many others when properly explored and exploited, is envisaged to boost the economy of the state.

This was stated in the annual administrative report (2008-09) of the Nagaland State Mineral Development Corporation Ltd (a Government of Nagaland undertaking) tabled in the recently-concluded state assembly session. To exploit them commercially, Nagaland State Mineral Development Corporation Ltd (NSMDC) was set up by the Government of Nagaland and incorporated in May, 1981 with the main objectives of initiating commercial exploitation of limestone, coal and other mineral deposits and promoting, establishing and developing economic activities in mines and mineral-based industries.

The report also stated that the eleventh plan was  formulated with the basic aim to promote and facilitate mineral-based industries in the state for economic growth along with generation of employment. The investments will also be justified by cost benefit analysis, the report said. Strategies proposed to be adopted include initiation of mineral-based industries by facilitating and involving the people or private sectors with technical guidance and assistance from the government. The assistance is to be through  corporations to generate economic growth and employment; to enter into profit-sharing ventures with private companies in various limestone and other mineral based projects; to enter into joint venturing with various oil companies in exploration and production of hydrocarbons and its downstream industries and leasing and/or privatization of existing production units such as cement plants and the decorative  and dimensional stone plants for better cost effectiveness.

The report said that the board also decided that restructuring should be undertaken towards which privatization or joint venturing possibilities and formation of separate profit center divisions  or subsidiaries must be examined and taken up. It was further decided that the corporation should draw up programmes to involve the  people,  villagers and  landowners for exploitation of  mineral resources in the private sector. 

The Report said the approach and strategies to be adopted in respect of NSMDC as approved by the State Planning Board includes; the existing units should be quickly brought up to profitable operation to make them attractive for eventual privatization and the possible viable mineral based industries to be identified and promoted by involving the people/private entrepreneurs so as to generate economic growth and employment with full justifications in terms of cost benefit analysis and economic viability.

It also stated that NSMDC should steadily change over from being a direct promotion/production agency to become a facilitating (including consultancy) and channeling agency for rapid establishment of viable mineral-based industries in the state during the Eleventh Plan, availing Negotiated Loans from LICI, HUDCO and other financial institutions wherever possible, for which various steps are to be taken by the Corporation.

The steps, according to the report, include; provide technical information on the potential of minerals to the people, provide technical expertise including drawing up of appropriate project reports for exploiting such resources, provide guidance to tie up with other enterprises outside the state for marketing including collaborations for exploitation of minerals, guide and provide avenues for funding, specially from institutional finance, to the entrepreneurs, the possibility of NSMDC becoming a financing agency to be examined in this respect, examine the possibilities of disinvesting and privatizing or collaborating with private entrepreneurs in the present projects, training and capacity building of not only the department personnel but also of the people as another important strategy, intensive co-ordination with other related departments to ensure that necessary infrastructures are in place to exploit the mineral wealth of the state.

In particular, coordination with the rural development department to harness the potentials of the VDBs as producers or production agents for the “people oriented mineral development programme’ and explore the means of laying down the framework for export of mineral resources specially the limestone and decorative stones to south-east Asian countries. Another strategy is to enter into joint venturing arrangements with oil companies for exploration and exploitation of oil resources in the state, the report stated.