Dimapur, August 02 2009: According to an annual administrative report 2008-09 of the Nagaland State Mineral Development Corporation Ltd, Nagaland 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.

As per report 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.

To exploit them commercially, Nagaland State Mineral Development Corporation Ltd 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 program 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.

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