Nalco likely to gain access to Orissa bauxite reserves

After waiting some 20 years, India’s largest integrated aluminium refiner, the National Aluminium Company Limited (Nalco), was likely to gain access to the 75-million tons of bauxite reserve at Pattangi, in Orissa.

In a communication with the company, the government of Orissa indicated that it had agreed, in principle, to earmark the Pottangi bauxite reserves for Nalco subject to the company agreeing to certain conditions, including the development of the peripheral areas and payment of water tax to the government.

Gaining access to the Pottangi reserves was critical for Nalco’s $1.17-billion third-phase expansion, which had been put on hold for failing to secure new bauxite reserves.

Nalco produces 345 000 t/y of aluminium linked to the 310-million bauxite reserves at Panchpatmali Hills in Koraput district. This reserve was expected to last for another ten years and any expansion of the company’s metal production capacity would have to be linked to new reserves, senior officials said.

The Orissa government, which played host to around 55% of India’s 3.2-billion ton bauxite reserve, has informed the company that it was ready to restart allocation of the Pottangi reserves to the Indian government but Nalco would first have to settle its disputes over payment of water cess to the government. The company had moved the courts against the state government’s imposition of water cess.