NEW DELHI: State-run manganese ore producer MOIL LtdBSE 4.30 % today said it has been granted licence by Maharashtra government to prospect over 11 blocks measuring 597 hectares in Nagpur andBhandara districts.
"The total area comprises of 11 blocks located adjacent to the existing leasehold area of MOIL in Nagpur and Bhandara districts. MOIL is getting this new area for the first time since its inception in 1962," the company said in a statement.
MOIL is currently operating six mines in Maharasthra and four mines in Madhya Pradesh for over a century.
The company said six of the allotted blocks are located in Ramtek, Saoner and Mouda Tahsils of Nagpur district and five are located in Tumsar Tahsil of Bhandara district.
"Presently, MOIL's existing leasehold area in Maharashtra is spread over an area of 696 hectares and with the addition of the new allotment, total area shall be 1,293 hectares reflecting an increase of 86 per cent," MOIL said.
"Some of the areas will be utilised for expansion of the existing mines and there is a possibility of opening up of at least four new mines," he added.
Anticipating grant of mines, MOIL has already earmarked Rs 250 crore for conducting geophysical studies, exploratory drilling, etc.
Following this, the company would convert these leases to Mining Leases (ML) so as to start the mining operations in the coming years.
However, there would be a number of statutory clearances such as environment and forest among others before new mines could be started.
MOIL plans to achieve a production level of 2.2 million tonnes by the year 2020-21 from the existing mines with a total investment of Rs 600 crore.