A cross-sectional study on malaria was undertaken in May 1989 in the settlements of Kalta and Barsuan iron ore mines situated in a hilly area of Sundargarh district. Fever surveys revealed slide positivity rates of 33.9% and 34.8% in Kalta and Barsuan, respectively. Malaria infection rates as recorded through mass blood surveys in the resident population were 23.5 and 13.8%, respectively. Children up to 9 years age suffered most from malaria and in the age group of 2-9 years 37.3%, children had enlarged spleens with an average enlarged spleen (AES) index of 1.7. P. falciparum was the most prevalent species followed by P. vivax and P. malariae. Malaria vectors viz., An. fluviatilis and An. culicifacies were present in high densities. The present paper also brings out the economic loss due to malaria to the mining industry.