The present study is conducted through two stages; the first stage related to various dimensions of mineral resources and economic development of Orissa; while the second stage is concerned with the employment generating activities involved in the reduction of the adverse impact of mining, rehabilitation of mined land and the reuse of mine wastes. A critical analysis points out that the revenue receipt from mining sector showing an increasing trend during the last 20 years. But the number of people employed directly in major mineral activities has a declining trend. Employment generation using minerals/ metals has been low in Orissa. The mining and associated processing units have potential negative impacts environmental sphere, that impose significant economic burdens on the growth process. The health index, education index and HDI value of mineral rich districts of Orissa is not encouraging which indicates that the revenue does not translate into development of mining districts. Vegetative methods of reclamation of mined land, soil conservation practices, conversion of mining waste into wealth, efficient use of degraded land, water harvesting and artificial groundwater recharge structures have been suggested as employment generating activities through environmental management in mining belts of Odisha.