OIL India Limited Secures Licence for Graphite and Vanadium Exploration in Arunachal Pradesh

OIL India Limited has signed a Deed of Agreement to explore graphite and vanadium in Arunachal Pradesh's Phop block. This initiative, supported by the Centre of Earth Science and Himalayan Studies, aims to enhance resource security and promote sustainable development in the region. The exploration phase is expected to last at least two years, with public consultations ongoing throughout the project. Chief Minister Pema Khandu has praised the successful execution of this agreement, highlighting its importance for the state's mineral strategy. The collaboration aims to ensure responsible mineral development while engaging local communities.

By Narendra Chaudhary Jan 3, 2026, 19:07 IST

Exploration Agreement Signed in Arunachal Pradesh

Itanagar, Jan 3: OIL India Limited, a state-owned enterprise, has finalized a Deed of Agreement granting them a composite licence to explore graphite and vanadium in the Phop block, located in the Keyi Panyor district of Arunachal Pradesh.

The agreement was formalized on Thursday for the mineral block situated in the Yazali circle, with the presence of key officials including Arunachal Pradesh's Geology and Mining Secretary A.K. Singh, OIL's Chief General Manager Raghunath Mishra, and Tana Tage, Director of the Centre of Earth Science and Himalayan Studies (CESHS), as stated in an official release on Friday.

With this composite licence, OIL is set to commence exploration activities at the designated site. Tana Tage mentioned that this exploration phase, similar to a pre-feasibility study, is anticipated to last at least two years.

“The decision to initiate actual mining operations will depend on the exploration results,” he informed the media.

Officials indicated that OIL's technical proficiency in mineral exploration, combined with CESHS's local insights and engagement, is expected to enhance operational effectiveness, improve stakeholder coordination, and foster responsible mineral development in Arunachal Pradesh.

This agreement is seen as a significant step in India's strategy for critical minerals, aimed at bolstering resource security, enhancing self-reliance, facilitating energy transition, and contributing to the overall growth of Arunachal Pradesh.

Tage emphasized that public consultations will be ongoing throughout the project's lifecycle, noting that several public hearings had already occurred in the region prior to the issuance of the composite licence.

“Should sufficient minerals be discovered and mining be proposed, additional public hearings will be held before any mining activities commence,” he added.

On social media, Arunachal Pradesh Chief Minister Pema Khandu expressed his congratulations to the State's Department of Geology and Mining and its partner companies for successfully executing the composite licence agreements for strategic mineral exploration.

“I am pleased to announce 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. Kudos to the Department of Geology & Mining and our partner companies — Vedanta Limited, Oil India Limited, and Orissa Metallik Private Limited — for this important achievement,” Khandu stated.

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

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

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

Officials noted that the Geological Survey of India (GSI) acts as the nodal agency for identifying potential mineral-rich areas through initial surveys, after which these sites are auctioned.

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