Vedanta looks at Orissa govt for alternative bauxite source

Financial Express, Aug 26, 2010
Bhubaneswar: With bauxite from Niyamgiri out of the question, Vedanta Aluminium, the aluminium arm of London-based Vedanta Resources, is now looking up to the state government for alternative arrangement of bauxite supply to its plant.


The company’s 1-million tonne alumina refinery at Lanjigarh in Kalahandi district is already operational. “As per the MoU signed in October 2004 with the Orissa government, the state government is suppose to supply 150 million tonne of bauxite for Vedanta’s alumina refinery,” said a company spokesperson. “Towards this, the Orissa government identified Niyamgiri mines as the initial sources of bauxite supply to the extent of 78 million tonne,” the spokesman pointed out.

In fact, the spokesman said, “In view of the ongoing delay in approval of the Niyamgiri mines, the Orissa government is actively considering allocation of alternate source of bauxite to Vedanta’s alumina refinery, from the state.”

Sources in the government said Vedanta has been assured Sasubahumali mines which promises about 81 million tonne of deposits.

The natural resources rich state of Orissa has the fourth largest reserves of bauxite deposits in the world; however, no new alumina refinery has been set up in the region in the last 25 years. The Kalahandi district, where Vedanta’s alumina refinery is located, is one of the most backward districts in the country. As on March 31, 2010, Vedanta had invested $5.4 billion in its aluminium projects in Orissa. Around 10,000 people are employed at the Lanjigarh alumina refinery plant.

“Vedanta remains committed to work with the local communities to ensure sustainable development in this region,” said Mukesh Kumar, chief operating officer, Vedanta Alumina,.

In 1997, state-owned Orissa Mining Corporation and Sterlite Industries (Indian) Ltd.(SIIL), a group company of Vedanta Resources, entered into an MoU to develop and exploit bauxite from the Niyamgiri mines. Since, the mining lease is with the OMC, the two companies floated a joint venture company to encourage private investment in the world class bauxite mines.