OMC to file fresh ML application for Karlapat mines

Business Standard, Jan 1, 2013

State controlled miner Odisha Mining Corporation (OMC) will submit a fresh application for mining lease (ML) of Karlapat bauxite deposits after completing due verification of forest and non-forest land and quantum of bauxite reserve within the lease area.

"We are going to submit a revised ML application to the Centre for Karlapat bauxite mines. Before that, we will take up verification to ascertain the quantum of deposits available beyond the sanctuary area and the amount of forest and non-forest land. The verification process will take three months”, OMC's chairman and managing director Saswat Mishra told the media after a high-level meeting chaired by state chief secretary B K Patnaik.

Asked if OMC would supply bauxite to Vedanta Aluminium Ltd (VAL) from the Karlapat deposits, he said, “It will take 3-4 years to start mining from the Karlapat mines. Depending on the prevailing market rates at that time, we will take a call on whom to supply bauxite. Our ML application for Karlapat is not specifically for Vedanta.”

The Karlapat bauxite mine in Kalahandi district possesses 200 million tonnes of bauxite. The northern side of the mine falls under a wildlife sanctuary.
Though Odisha with around 1800 million tonnes of bauxite has nearly 55 per cent of the country's deposits, it was unable to provide bauxite to VAL whose refinery was under temporary shutdown since December 5 2012 due to want of raw material.
OMC had entered into a MoU (memorandum of understanding) with VAL for operation of Niyamgiri mines in Kalahandi district jointly, but the plan fell through following persistent protests by tribal community and green activists, which led to cancellation of forest clearance for the mine by Union ministry of environment and forest (MoEF) in August 2010.
After the Niyamgiri fiasco, VAL had sought bauxite supplies from alternative mines and made several applications to the state government in this regard.
In a bid to help revive operations of the Lanjigarh refinery, the steel & mines department earlier this month started the process of identifying prospected bauxite deposits where mining operations can commence with the statutory clearances.
The department had urged the mines directorate to furnish the status of Niyamgiri, Karlapat and other prospected bauxite deposits which are available for taking up mining directly by the state government or through OMC.