Saturday, February 16, 2013

Will Vedanta revive Lanjigarh plant?

The New Indian Express (Bhubaneswar), Feb 16, 2013

In a bid to revive its alumina refinery  at Lanjigarh in Kalahandi district, the Vedanta Aluminium Limited (VAL) on Friday provided several options before the inter-ministerial group (IMG) for steady supply of bauxite.
VAL’s chief operating officer (COO) Mukesh Kumar told mediapersons that the company has given various options to arrange alternative source of bauxite for immediate revival of the plant. ‘’Operations will be resumed in the plant as soon as the company is provided raw material,’’ Kumar said.
VAL stopped operation of its 1 mtpa capacity refinery on December 5 last year due to scarcity of bauxite. Kumar said that 7-8 bauxite mines __ operated years back __ can be revived as no permissions will be necessary, he said.
There are also a number of mines where explorations and other technicalities have been completed. These mines can be operated within a short period. Besides, the Odisha Mining Corporation (OMC) has also filed applications for several bauxite mines.
 Kumar said that the response of the IMG, headed by Finance Minister Prasanna Kumar Acharya, was positive. He also ruled out shifting of the plant to any other state..
The options can be considered for the revival of the plant within a month or two. These mines however have small and medium scale deposits. Long term solution for supply of raw material can be considered after the plant is revived, he said.Auto components major RSB Group which has signed MoU with the State Government for setting up alumina refinery and smelter in December, 2008 also presented its case before the IMG.
Vice-chairman and managing director of the RSB Group SK Behera said considering the mega investment and the corresponding socio-economic development for the state arrangement of sourcing of bauxite for shorter horizons will not be prudent.
Stating that development of a green field mine under the present frame of rules and regulations will take at least three to four years, the group maintained that OMC should expedite prospecting licence and mining lease of the mines to ensure timely supply of raw material for the refinery.
Minister of State for Steel and Mines Rajani Kanta Singh said that the IMG group examine the proposals submitted by all the stakeholders before submitting its report to the State Government which will ultimately take a decision.

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