Odisha Mining Corporation (OMC) and Vedanta Resources have teamed up to find a headway together in the Niyamgiri bauxite mining issue which has long been the centre of a multi-faceted problem involving the state, the mining conglomerate, and major political parties at the Centre.
OMC has appealed in the Supreme Court to reorganize the Gram Sabha in Niyamgiri so that it along with Vedanta Resources can mine the Niyamagiri hills by getting the local inhabitants Dongria Kondhs on their side.
The State government, on the other hand, has given prospecting license of mining areas in Koraput to Sera Sterlite, a subsidiary of Vedanta Resources, for 150 hectors of bauxite reserve in Dangadeula hill for laterite mining. If laterite is discovered, then Sesa Sterlite will get lease for 20 years without any hassles as laterite is a minor mineral and comes under the control of the State government.
However, if high bauxite content is found then Sesa Sterlite will have to apply of bauxite mining lease. And in the present situation of bidding it might not be easy for Vedanta or Odisha Mining Corporation to get the lease.
In the midst of all these developments, activists have upped the ante of their agitation across vast areas in these two regions. At stake are the operations of the alumina refinery at Lanjigarh which has been starved of bauxite- the chief raw material for the refinery.
Vedanta's Lanjigarh refinery requires three million tonnes of bauxite as raw material every year to produce one million tonnes of alumina. It, however, does not have any captive bauxite mining lease or backward linkages for the ore. The refinery, therefore, is completely dependent on external supplies. To satiate its bauxite requirement, the refinery sources the ore from states like Chhattisgarh, Andhra Pradesh, Gujarat, Maharashtra etc. and also depends on bauxite imports from New Guinea.
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