Mines Minister B K Handique said that the prospecting licence has been approved for 662.95 hectares in the Karampada region of the state.
Jharkhand had sent two recommendations for allotment of prospecting licence to the world's largest steelmaker in the West Singhbhum district on Dec 31, 2009.
"Out of which, we have sent back one proposal for grant of prospecting licence over 416.93 hectare to the Jharkhand government for some clarifications and approved the another," he added.
The validity of prospecting licence to ArcelorMittal is three years. The company has to establish the mining potential to go ahead with the project within the period of time.