India's ONGC Limited Discovers Uranium Deposits During Oil Field Exploration in Assam

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Researched by Industrial Info Resources (Sugar Land, Texas)--According to recent media reports, ONGC Videsh Limited (BSE:500312) (New Delhi), India's leading oil and natural gas exploration company, has discovered uranium deposits while performing exploration activities in the northeastern state of Assam. Traces of uranium were found at the Borholla oil fields in Jorhat district, about 360 kilometers from Guwahati.

Reports indicate that ONGC is proposing a detailed survey of the sources, which include 20 oil wells and several other abandoned wells in the area, in association with Uranium Corporation of India (Singhbhum, Jharkhand). Earlier, the two companies had signed an agreement to jointly perform research and development activities in renewable energy. A $108 million grant was sanctioned for these projects. ONGC is also exploring the possibility of setting up a nuclear power plant with UCIL in Assam, if the studies indicate the presence of uranium resources in the area.

ONGC produces 1.2 million tons of oil per year from its fields in Assam. The state has proven reserves of 156 billion cubic meters of natural gas and 1.3 billion tons of crude oil, of which 58% is yet to be explored. Each year, India produces 30 million tons of crude oil, with Assam contributing 5 million tons. R S Sharma, chairman of ONGC, has responded to media reports by denying any uranium discovery. He indicated that while there have been traces of some radioactive element, confirmation is awaited.

The companies have proposed to examine about 900 oil and gas wells in Assam to identify the availability of uranium deposits. The first step will be to cover Borholla and nearby areas in Jorhat district. Although the neighboring state of Meghalaya has abundant reserves of uranium, it is the first time that a uranium discovery has been made in Assam. Studies by the Department of Atomic Energy (Mumbai) have indicated that the region around Domiasiat in Meghalaya may contain uranium reserves in excess of 10,000 tons. The reserves in Domiasiat, which is about 150 kilometers from the capital city of Shillong, are considered to be the largest sandstone-type deposits in the country.

The uranium deposits in Meghalaya are at depths between 8 meters and 47 meters from the ground. UCIL, which is India's only uranium mining and processing company, faced stiff opposition from villagers in the area. The company had to cease mining in the state in the 1990s; since then, it has not been able to commence operations. Recently, UCIL announced that it was investing $227.4 million on an open-cut mine and processing plant in Meghalaya. The company received approvals from the Ministry of Environment and Ministry of Mining to go ahead with its proposed 375,000-ton-per-year uranium ore mine and 1,500-ton-per-day ore processing facility in the state.

Presently, UCIL operates 1,000-ton-per-year mines at Jaduguda, Narwapahar and Bhatin. All three mines are in the state of Jharkhand. The company operates Jharkhand's Turamdih and Bagjata mines and the 2,400-ton-per-year Banduhurang mine, which is India's first open-cut uranium mine. The Turamdih and Jaduguda operations include mineral processing facilities, with capacities of 3,000 tons per day and 2,090 tons per day, respectively. The company's proposed projects in Andhra Pradesh include Tummallapalli and the 2,400-ton-per-day Mohuldih mines, which are expected to begin operations by 2010, and the Lambapur-Peddagattu mine, which is scheduled to be brought online by 2012.

According to the World Nuclear Association (London, England), India has 54,000 tons of assured uranium resources with another 23,000 tons of estimated reserves. The uranium ore found in India is considered to be low-grade and requires processing before it can be used in nuclear reactors as fuel. It contains 0.03 to 0.2% of triuranium octoxide (U3O8), an impure mixture of uranium oxide. International mines contain 2% to 14% of U3O8. India has 290,000 tons of thorium reserves, which is about 25% of the global deposits. Thorium is emerging as a popular fuel in nuclear power generation.

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