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AL CIRCLE

Fresh bids, old questions: Odisha’s Karlapat bauxite mine returns to auction list

EDITED BY : 2MINS READ

Bauxite Cave PNG

Stock image for referential purposes only

Odisha is advancing with the mining auction process for eleven mineral blocks across essential mining districts, reopening discussions around some of the state’s most coveted resource projects. Among the assets on offer is the Karlapat bauxite block in Kalahandi district, a deposit that has long remained at the centre of environmental and legal debates.

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The Directorate of Mines and Geology has invited bids for mining leases (ML) covering eight mineral blocks and composite licences (CL) for three bauxite-bearing blocks located in Kalahandi, Keonjhar, Rayagada, Sundargarh and Bargarh districts.

Explore the relevance of red mud in the sustainable aluminium industry in A Comprehensive Analysis of Bauxite Residue (Red Mud): Sustainability, Resource Recovery and Strategic Recommendations

The Karlapat and Nunapaimali bauxite blocks, both considered strategically important for aluminium producers seeking long-term raw material security, are expected to draw increased attention. The Karlapat deposit alone is estimated to host around 220 million tonnes of bauxite spread across more than 3,100 hectares.

The renewed listing of Karlapat is likely to draw scrutiny from environmental groups because of its proximity to the ecologically sensitive Karlapat Wildlife Sanctuary. The block previously became the subject of legal concerns involving forests, wildlife habitats and local water resources, considering which, in 2021 the Orissa High Court halted its auction.

Alongside the bauxite assets, Odisha has also offered several iron ore, manganese and mixed mineral blocks. These include the Gadadharpur iron ore block in Keonjhar district and two iron ore-manganese deposits in Sundargarh and the only non-metallic mineral asset of Behera-Banjipali limestone block in Bargarh.

The auction drive seals Odisha’s expanding efforts for mining pipeline to reinforce investments in aluminium, steel and other mineral-based industries. The state is striving to position itself as a major supplier of critical raw materials.

Discover the current market insights from industry's leading voices in our e-magazine ALuminium LeaderSpeak 2026  

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