The Odisha government and state-owned Odisha Mining Corporation entered into a partnership on Wednesday, 11 January, that will provide bauxites to the Vedanta’s Lanjigarh alumina refinery, which is not operating to its full capacity.
Lanjigarh alumina refinery will get bauxite supplies from Kodingamali bauxite mines owned by Odisha Mining Corporation with total reserves of 81 million tonnes.
Vedanta’s Odisha project is facing bauxite shortage after the Niyamgiri bauxite mining project was shut down, following the Supreme Court’s decision and local tribals objections. From then on, Vedanta has been pleading the state government for substitute bauxite mining.
After the shutdown of Niyamgiri bauxite mining, the joint venture between Vedanta and Odisha Mining Corporation was terminated by the state government in order to increase bauxite at the Niyamgiri mine.
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Presently, the production capacity of Vedanta’s Lanjigarh alumina refinery is 2 million tonnes annually with the extended capacity of 4 million tonnes annually but the alumina refinery is producing one million tonne a year.
Vedanta’s Lanjigarh alumina refinery gets bauxite from states like Gujarat, Chhattisgarh and Andhra Pradesh and imports the material.
Along with this agreement, the state government also implemented rental agreement with other miners.
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