Vedanta’s tryst with bauxite supply issues for Lanjigarh refinery seems to continue

There seems to be no quick respite for Vedanta as far as sourcing of bauxite for its ailing Lanjigarh alumina refinery is concerned. The green activists who had long opposed Niyamgiri bauxite mining project, driving the mining major’s alumina refinery in Lanjigarh to a near closure, seem to be equally peeved with the state government’s latest move to arrange bauxite for the company from Kodingamali mines in Koraput district.

“The issues that we fought for at Niyamgiri are also relevant for Kodingamali, a forested hill range saddled by tribal inhabitations,” said Prafulla Samantray, head of Lok Shakti Abhiyan, a social organisation. Biswajit Mohanty, managing trustee of Wild Society of Orissa, was heard echoing his concern.

Despite its strategic location in the bauxite hub of the country, Lanjigarh alumina refinery has long suffered from acute raw material crisis. It has mainly thrived on bauxite procured from states like Gujarat, Chhattisgarh, Maharashtra, and Andhra Pradesh since its inception. Some amount of the ore was even imported from countries like New Guinea. This complex supply chain arrangement led to mounting losses quarter after quarter which forced Vedanta to finally idle the second stream at the refinery last year December.



Attempts were earlier made by the state government to revive the refinery by allowing Vedanta to source bauxite from Niyamgiri hill reserves, but those attempts proved futile in the face of growing agitation showed by the green activists. Eventually, they came up with an alternative in the form of Kodingamali bauxite mine.

"We will make arrangements for bauxite supplies to Vedanta plant from OMC's Kodingamali mines. Bauxite supplies can take off once production starts from the mines", said Odisha's steel & mines minister Prafulla Mallick last month.

However, with environmental activists clenching their fists once again in opposition to the proposed bauxite mining in Kodingamali, it remains to be seen when things start getting smoother for Vedanta.