Jharkhand is a preferred place to set up mineral based heavy and medium scale industries viz. Iron and Steel, Aluminium, Cement, Coal based plants fertilizer, insulator,graphite electrode and refractory plants without importing any major raw material from other states.Prospects of important mineral based industries which can be set up in this state are discussed briefly.

Iron and Steel

Although the existing three integrated steel plants namely Bokaro, Tata Nagar and Burnpur are entirely dependent on the mineral wealth of Jharkhand, yet another steel plant can be set up in this region. Considering the availability of Iron Ore from the largest Chiria Iron Ore deposit and cooking deposit of Jharia coal fields, Manoharpur in Singhbhum district is the ideally suited location for a 3.0 million tones integrated steel plant in Jharkhand. MECON has already prepared a feasibility report (FR) for Steel plant at Manoharpur based on the Iron Ore from West Singhbhum and coal from Jharia mines.

Presently, this region is having one indigeneously based DRI plant at Chandil with 150,000 t/yr. Capacity using the rich iron ore deposit of Barajamda sector and non-coking coal reserves from south Karanpura coal fields. Keeping in view the increasing demands of sponge iron in the near future there is tremendous scope for DRI Plant in this region. Also,there is a need to study for expansion of existing iron ore mines of Barajamda sector.

Coal Based

Plant Coal is an essential input material for blast furnaces and other induatries namely ferro alloy, soda ash and textile, etc... Due to limited availability of prime coking coal in this state, a number of steel plants are importing coke from Australia and China, to reduce import a case exists to create indigenous coke making facilities to meet the increasing demand of coke. This will also help in establishing chemical industries based on by-products. Jharkhand which is the only state having the prime coking coal reserves with sizeable quatities of medium and semi coking coal deposits, is the state to set up coke oven units with or without by product recovery in various capacities ranging from 0.065 million tones per year to 1.0 million tones per year. This will also open up avenues for putting up down stream industries.

There is a good scope for setting up washeries to reduce Ash percent in indigenous coal. With liberalization in coal mining policy more than 40 coal blocks have been thrown open for private coal mining.

Cement Industries

With the reserves of cement grade lime stone this region is well suited for creating additional capacities both in large modern cement plant utilizing granulated slag from steel plants which is available in satisfactory quantity and mini cement plants utilizing smaller lime stone deposits together with pre cast concrete structure production facilities. Presently, there are six large and fine and five tiny cement plants operating in this state.

Refractory Plant

The jharkhand state is a major producer of refractories and aluminiabricks in the country taking advantage of substantial reserves of refractory material and fireclay available in and around Dhanbad, Hazaribagh, Latehar and Giridih area. The demand of refractories in the country is expected to increase by 2011-2012 due to increase in demand of steel. development of new refractory plants and technology upgradation, modernization and expansion of existing plants may be planned in advance to cater the requirement of the steel plants.

Graphite based Units

The valuable mineral is being benefited only by few plants for producing both flaky and amorphous variety of Graphite.

Presently, only graphite crucibles are being manufactured by one unit.

There is ample scope to set up graphite based units for manufacturing graphite electrodes for electric arc furnaces.

Thermal and Hydel Power Plant

The Jharkhand state which is having large coal deposits and many rivers flowing through this region, also have very attractive potential for hydel and thermal power plants.

Precious - semi precious and Ornamental stones

The mica pegmatite veins in and around Koderma-Giridih belt are very goodzone for a number of precious and semi precious stones. Apart from Chatra, West Singhbhum also has deposits of such stones. There is a tremendous scope for setting up lapidiary, cutting and polishing units.

A variety of granites are available here. With the development of infrastructure and nearer port facility this region is bound to get a boost in granite scenario.