80Mt bauxite, 13 years later: Vedanta renews Niyamgiri mining push in Odisha

Leading Indian aluminium producer Vedanta has renewed its push to revive bauxite mining at Odisha’s Niyamgiri hills, about 13 years after the proposed project was shelved. With Niyamgiri hosting around 80 million tonnes of bauxite reserves, the renewed proposal brings the resource potential of the Kalahandi-Rayagada belt back into focus.

Vedanta Chairman Anil Agarwal discussed reopening the Niyamgiri bauxite mining project with Odisha Chief Minister Mohan Charan Majhi in Bhubaneswar on September 26. Agarwal mentioned that the discussion addressed employment opportunities for involved tribal communities.

“Today it was discussed for reopening of Niyamgiri. The affected tribals should be given jobs,” Agarwal stated.

The state government also indicated that steps would be taken towards the necessary permissions.

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Niyamgiri’s 80-million-tonne bauxite reserve back in focus

Niyamgiri, spread across Odisha’s Kalahandi and Rayagada districts, has long been linked to Vedanta’s alumina refining operations at Lanjigarh. The hills are estimated to contain around 80 million tonnes of bauxite, while the company operates a 5 million tonnes per annum alumina refinery at Lanjigarh.

The renewed interest also relates to earlier arrangements for securing bauxite supplies for the Lanjigarh refinery. In 2004, Odisha entered into agreements with Vedanta Resources and its subsidiaries for a long-term supply of 150 million tonnes of bauxite, with a substantial portion envisaged from a joint venture involving state-owned Odisha Mining Corporation (OMC) and mining in the Niyamgiri hills.

Agarwal noted that Vedanta had been allotted Niyamgiri in 2003 with mining rights forming part of the understanding at the time. He referred to the 5 MTPA Lanjigarh alumina refinery as a testament of Odisha’s industrial development.  

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The Niyamgiri mining proposal became a point of conflict in 2013 since unanimous concerns from 12 gram sabhas surrounding religious, cultural and community forest rights of the local communities under the Forest Rights Act had led to a halt in the project’s course. Tribal representatives still express such concerns on the subject.

The latest push comes with Vedanta’s outline of a wider investment programme for Odisha. The company has announced plans to invest around INR 1 trillion (USD 10.42 billion) in the state across mining, aluminium, refining and downstream manufacturing.

The proposed projects include a 3 MTPA aluminium smelter in Dhenkanal, a 6 MTPA alumina refinery in Rayagada, and a 1 MTPA brownfield expansion of the Jharsuguda aluminium smelter. The company has also proposed a 1,000-bed super-specialty hospital in western Odisha.

For the Niyamgiri project itself, however, the latest developments remain at the stage of renewed discussions and the process of obtaining necessary permissions as well as meeting the local communities at a middle ground.

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