Incorporated in pre-independence era with Mehta family having majority shareholding. Initially business centres around trading in various minerals.
Application filed for grant of Mining Lease over 40sq km under one block. Eventually mining lease was granted on 3rd February 1945 over an area of 3125 acres for a period of 30 years covering 5 mines viz. Deoghat, Domuhani, Mohulsukha, Kalta and Narayanposhi for mining of Manganese Ore only.
Sometime around mid 1950s, it was deemed imperative by the Government of India to bring uniformity in the tenure of mining leases all over the country as such modification of mining leases were carried out. Accordingly, the tenure of the Company’s lease was reduced to 20 years from the original grant of 30 years.
The first renewal of all 5 leases was granted for a further period of 20 years. Despite adverse logistic conditions, the work continued.
Around 1973-74 another important legislation was brought the Government whereby the Company could not hold more than 10 sq km of area in one state and as such the Company surrendered two area viz. Deoghat and Kalta which were having low grade Mn Ore deposits.
Notwithstanding the setback, the Company pursued vigorous exploration to find out the possibility of occurrence of Iron ore deposits which is an associated mineral of Mn Ore within the same leaseholds.
Fortunately, persistent efforts yielded positive results and the Government of Orissa was intimated about the findings. Accordingly, under a supplementary lease deed Iron Ore mining was sanctioned.
Production of Iron Ore commenced despite the handicap of long distance to the nearest public railway sidings at Barbil about 36 km away.
The Company started supplying Iron Ore to Rourkela Steel Plant through MMTC along with Manganese Ore. Later SAIL changed its policy to consume their own iron ore from its captive mines.
The second renewal of mining lease was granted for 20 years for all three blocks viz. Mohulsukha, Domuhani and Narayanposhi.
Application for third renewal was made to the Government of Orissa. Necessary permissions under Forest and Environment Act were obtained.