Bihar’s ₹21,000 crore mineral reserves may generate over ₹5,000 crore annual revenue, says report

Bihar is reportedly seeking to rebuild its mineral economy after decades of being left with little of the mineral wealth that remained with Jharkhand following the states’ bifurcation in 2000. Geological investigations conducted between 2021 and 2024 have identified mineral resources estimated at more than ₹21,000 crore across Rohtas, Jamui, Gaya and Jehanabad, reported The Indian Express.

The discoveries could potentially generate more than ₹5,000 crore in annual mining revenue once the identified resources are converted into operational mines, according to state officials. That would be significantly higher than Bihar’s current record mining collection of ₹3,592 crore, which comes predominantly from minor minerals such as sand and stone.

However, the transition from geological discoveries to commercial production remains a major challenge. The state is targeting mineral extraction across different projects between 2026 and 2031, with exploration, auctions, clearances and mining leases still to be completed.

What minerals has Bihar discovered?

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

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

The Bhora-Kathra block in Rohtas has also been identified with 33-39.68 million tonnes of high-grade limestone, valued at about ₹1,761.42 crore. The mineral is widely used in cement manufacturing and for producing 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 sulfuric acid production and other industrial chemical processes.

Jamui’s magnetite and gold potential

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

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

The Sono area has also attracted attention for its gold-bearing resources. Exploration has 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. Preliminary exploration has been carried out, with trial production targeted for 2027-28.

Critical minerals add to Bihar’s mining prospects

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

These minerals have applications across strategic industries. Vanadium is used in high-strength steel 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 defence equipment.

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

Bihar prepares for commercial mining

The ₹21,000 crore estimate is based on geological assessments that consider factors such as extraction, beneficiation and logistics. The Geological Survey of India generally progresses exploration through four stages — G4 reconnaissance, G3 preliminary exploration, G2 general exploration and G1 detailed exploration.

Bihar has been aligning its legal and administrative framework with mineral-rich states such as Odisha and Jharkhand to move identified blocks towards commercial extraction under the amended Mines and Minerals (Development and Regulation) Act.

The Ministry of Mines has also introduced reimbursable private-agency models through the National Mineral Exploration Trust to reduce investment risks during the early exploration phase.

Under the proposed administrative roadmap, mining plans are expected to be submitted within six months, environmental clearances targeted within 18 months and lease execution completed within 12 months.

The state's timeline includes advanced G2 and G1 drilling under composite licences during 2026-27, trial production from the Sono gold resource in 2027-28 and broader commercial mineral extraction between 2026 and 2031.

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

Why Bihar may struggle to unlock the full value

The scale of the discoveries does not automatically translate into state revenue. Early auction rounds for some glauconite and nickel blocks had to be cancelled because of limited participation, with prospective miners hesitant to make large bids based on preliminary exploration data, the report noted.

Technology and investment are additional hurdles. Extracting agricultural-grade potash from hard-rock glauconite and recovering vanadium from magnetite require capital-intensive processing technologies, some of which are still developing domestically.

Land acquisition could pose another challenge. Although several mineral blocks are located outside forest areas, land ownership in agricultural regions is often fragmented among numerous private owners. Securing surface rights could therefore add to project timelines, alongside mandatory environmental approvals and Pollution Control Board clearances.

Illegal mining is another concern as the state moves towards commercialisation. Bihar has announced plans for a specialised 1,000-member Mines Police Force to strengthen enforcement and protect mineral-bearing areas.

About the Author

Garvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. <br><br> With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. <br><br> Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. <br><br> He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. <br><br> He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. <br><br> He can be reached on <a href="https://www.linkedin.com/in/garvit-bhirani">LinkedIn</a> or on <a href="https://x.com/GarvitBhirani">@garvitbhirani</a> on X

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