Bihar’s ₹21,000 crore mineral reserves can generate over ₹5,000 crore annually, says report | Today’s news

Bihar is said to be trying to rebuild its mineral economy after decades of little mineral wealth left to Jharkhand after the bifurcation of the state in 2000. Geological surveys conducted between 2021 and 2024 revealed mineral resources estimated at more than ₹21,000 crore through Rohtas, Jamui, Gaya and Jehanabad, The Indian Express reported.

The discoveries could potentially yield more than ₹According to state officials, the annual mining revenue is Rs 5,000 crore once the identified resources are converted into operational mines. This would be significantly higher than the current record mining collection in Bihar ₹3,592 crore which is mostly from minor minerals like sand and stone.

However, the transition from geological discoveries to commercial production remains a major challenge. The state is targeting mineral extraction in various projects between 2026 and 2031, with exploration, auctions, clearance and mining leases still pending.

What minerals did Bihar discover?

Rohtas accounts for the major share of identified resources. Geological surveys found around 130.11 million tonnes of glauconite in the Pipradih-Bhurwa and Chutia-Nauhatta blocks with an estimated ₹14,048 million crowns.

Glauconite can serve as a source of potassium for fertilizers, a potentially significant resource for India given its dependence on imported potash fertilizers.

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The Bhora-Kathra block in Rohtas has also been identified with 33-39.68 million tonnes of high-grade limestone worth about ₹1,761.42 million crowns. The mineral is widely used in the production of cement and for the production of quicklime.

Rohtas is also home to the Amjhor pyrite deposits, which account for nearly 95% of India’s known pyrite resources. Pyrites are used in the production of sulfuric acid and other industrial chemical processes.

Jamui’s magnetite and gold potential

Jamui has emerged as another important mineral zone, especially for magnetite and gold.

The Majos Block contains an estimated 48.40 million tonnes of magnetite with an estimated value ranging from ₹3,817.60 million crowns ₹6,000 million crowns. The Bhanta block has another 6.49 million tonnes, worth around ₹511.91 million crowns. Magnetite is primarily used as an iron ore in steelmaking and other metallurgical applications.

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The Sono area also attracted attention for its gold-bearing resources. Exploration identified 222.88 million tonnes of ore containing an estimated 37.6 tonnes of gold metal.

The Sono resource is classified as a remaining resource rather than a reserve. A preliminary survey has been carried out, with trial production planned for 2027–28.

Critical minerals add to Bihar’s mining prospects

Exploration at Gaya and Jehanabad identified vanadium-bearing magnetite, ilmenite, rare earth elements and lithium-bearing pegmatites.

These minerals are used in all strategic sectors. Vanadium is used in high-strength steels and energy storage technologies, while ilmenite is a source of titanium dioxide. Lithium and rare earth elements are important for technologies including electric vehicle batteries, wind turbines and defense equipment.

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The discoveries could therefore expand Bihar’s mineral ambitions beyond traditional mining and into minerals considered strategically important to emerging industries.

Bihar is gearing up for commercial mining

The ₹The 21,000 million estimate is based on geological estimates that take into account factors such as mining, utility and logistics. The Geological Survey of India generally progresses the survey in four stages – G4 survey, G3 preliminary survey, G2 general survey and G1 detailed survey.

Bihar is bringing its legal and administrative framework in line with mineral-rich states like Odisha and Jharkhand to shift identified blocks to commercial mining under the amended Mines and Minerals (Development and Regulation) Act.

The Ministry of Mines has also introduced models of reimbursing private agencies through the National Mineral Exploration Trust to reduce investment risks during the initial phase of exploration.

Under the proposed management plan, mining plans are expected to be submitted within six months, targeted environmental permits within 18 months and lease completion within 12 months.

The state’s timeline includes advanced G2 and G1 drilling under composite licenses in 2026-27, test production from the Sono gold resource in 2027-28 and wider commercial mineral extraction in 2026-2031.

The eighth tranche of critical mineral auctions was also launched in Patna in August 2026, which represents another step towards bringing newly identified mineral resources of Bihar into the commercial mining pipeline.

Why Bihar can strive to unlock full value

The extent of discoveries does not automatically translate into government revenue. Early auction rounds for some glauconite and nickel blocks had to be canceled due to limited participation, with potential miners hesitant to make large bids based on preliminary exploration data, the report said.

Technology and investment are other obstacles. Extracting agricultural-grade potash from hard glauconite and extracting vanadium from magnetite requires capital-intensive processing technologies, some of which are still being developed domestically.

Another challenge could be land acquisition. Although several mineral blocks are located outside forest areas, land ownership in agricultural areas is often fragmented among numerous private owners. Securing surface rights could therefore contribute to the project schedule along with mandatory environmental approvals and pollution control authority permits.

Illegal mining is another problem as the state moves towards commercialization. Bihar has announced plans to create a dedicated 1,000-member mining police force to strengthen enforcement and protection of mineral resource areas.

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