OIL India inks pact to explore critical minerals in Arunachal’s Yazali

Itanagar, Jan 3: State-run OIL India Limited has signed a Deed of Agreement for a composite licence to explore graphite and vanadium at the Phop block in Arunachal Pradesh’s Keyi Panyor district.

The agreement was signed on Thursday for the mineral block located at Yazali circle, in the presence of Arunachal Pradesh Geology and Mining Secretary A.K. Singh, OIL Chief General Manager Raghunath Mishra, and Centre of Earth Science and Himalayan Studies (CESHS) Director Tana Tage, an official statement said on Friday.

With the grant of the composite licence, OIL will initiate exploration activities at the site. CESHS Director Tana Tage said the exploration phase, which is akin to a pre-feasibility study, is expected to take a minimum of two years.

“Based on the findings of the exploration, a decision on commencing actual mining operations will be taken,” he told the press.

Officials said OIL’s technical expertise in mineral and resource exploration, combined with CESHS’s local knowledge and on-ground engagement, is expected to enhance operational efficiency, improve coordination with stakeholders and promote responsible and sustainable mineral development in Arunachal Pradesh.

The agreement is being viewed as a key milestone in India’s critical minerals roadmap, aimed at strengthening resource security, boosting strategic self-reliance, supporting the energy transition and contributing to the overall development of Arunachal Pradesh.

Tage clarified that public consultations would continue at every stage of the project, noting that public hearings had already been conducted several times in the area before the composite licence was granted.

“If sufficient minerals are found and mining is proposed, public hearings will be conducted again before mining activities begin,” he said.

Taking to social media, Arunachal Pradesh Chief Minister Pema Khandu congratulated the State’s Department of Geology and Mining and its partner companies on the successful execution of composite licence deeds for strategic mineral exploration.

“Happy to note the successful execution of Composite Licence Deeds for the exploration of strategic graphite and vanadium mineral blocks at Depo (Papum Pare), Phop (Keyi Panyor) and Radhpu in Arunachal Pradesh. Congratulations to the Department of Geology & Mining and our partner companies — Vedanta Limited, Oil India Limited and Orissa Metallik Private Limited — for this important milestone,” Khandu wrote.

Under the agreement, CESHS will participate in the project as a local partner with a 10% stake. As a stakeholder with a strong grassroots presence, CESHS will support preliminary and exploratory surveys and assist in coordination with local communities and authorities to ensure smooth execution of exploration activities.

Separately, agreements were also signed for the Depo and Radhpu blocks in Papum Pare district for the exploration of graphite and vanadium.

The Vedanta Group has secured exploration rights for the Depo block, while Orissa Metallic has won the licence for the Radhpu block.

Officials said the Geological Survey of India (GSI) serves as the nodal agency for identifying potential mineral-bearing areas through initial surveys, following which such sites are auctioned.

In case of Yazali circle, OIL won the auction for the Phop block and subsequently appointed CESHS as its local partner for exploration in Keyi Panyor district.

With inputs from PTI