Marking a major transition into downstream mineral processing, the Odisha Mining Corporation (OMC) has announced plans to establish a 1.5 million tonne per annum (mtpa) pellet manufacturing plant near its Gandhamardan iron ore mines in Keonjhar district. 

The gold-category state public-sector undertaking will invest an estimated Rs 800 crore into the project, signaling a deliberate strategy to move up the mineral value chain.

The move assumes significant commercial importance because of OMC’s unique approach to raw material utilisation. Unlike private mining and steel companies that typically rely on high-grade ore or beneficiated concentrates for pellet production, the state-run corporation intends to manufacture iron ore pellets primarily from low-grade ore fines and other mineral resources that have traditionally remained underutilised, as reported by Business Standard. 

According to industry experts, the pelletisation of low-grade ore can substantially enhance resource efficiency, reduce waste generation, improve overall mineral recovery, and create fresh revenue streams from resources that otherwise fetch a lower market value.

CM Directs Out-Of-State Industrialisation

This downstream expansion aligns closely with directives from the state’s executive leadership. Speaking at the 71st Foundation Day of OMC, Odisha Chief Minister Mohan Charan Majhi urged the corporation to actively expand its scope of operations beyond provincial borders and undertake mine-based activities in other states. 

Majhi noted that the PSU has an abundance of raw materials at its disposal and should focus on nationwide industrialisation. He drew a parallel to the Gujarat Mineral Development Corporation, which has already successfully commenced mining operations within Odisha.

The initiative comes at a time when OMC is aggressively exploring new business avenues to maximise returns from the state’s mineral wealth while remaining aligned with sustainable mining goals. 

Beyond iron ore, the corporation recently inaugurated India’s first pilot plant for extracting platinum group metals (PGMs) from mineral ore. 

Built in collaboration with the Bhubaneswar-based Institute of Minerals and Materials Technology (IMMT) and South Africa’s mineral technology institution, Mintek, the pilot facility highlights OMC’s recent pivot towards technological innovation and resource optimization.

Record-Breaking Performance

The diversification strategy is backed by an exceptionally strong balance sheet, with OMC posting its strongest-ever operational and financial performance during the 2025-26 financial year (FY26). 

The corporation achieved a record total mineral production of 44.82 million tonnes (mt) and generated its highest-ever revenue of ₹25,300 crore.

The surge in extraction was led heavily by the iron ore sector, which saw output jump by more than 12 per cent year-on-year to hit a record 40.02 mt. Other mineral sectors also demonstrated robust growth:

Chrome Ore: Production grew by 25.19 per cent year-on-year to reach 1.69 mt.

Bauxite: Output reached a steady 2.83 mt for the fiscal year.

Limestone: Contributed a smaller but vital 240,000 tonnes to the overall production tally.

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This production momentum directly translated into highly efficient market supply, with total mineral dispatches reaching 42.5 mt in FY26. Iron ore heavily dominated the sales basket at 38.26 mt, followed by bauxite dispatches at 2.6 mt. Chrome ore dispatches accounted for 1.4 mt, while limestone dispatches wrapped up the annual sales figures at 230,000 tonnes.