Odisha government lists bauxite reserve for auction

The Government of Odisha has included one bauxite reserve (Ballada in Koraput district) among the list of 12 mines to be auctioned in the first phase. Earlier, the state government enlisted only iron ore, manganese and limestone mines for auction.

The move assumes significance as Vedanta Limited has announced closure of its 1 million tonne per annum refinery at Lanjigarh in Kalahandi district due to lack of raw material (bauxite). While the plant has been facing acute shortage of bauxite, the state government is yet to come out with a solution.

Odisha is trying to be the first state in India to start the mining auction according to the Mines and Minerals Development and Regulation Act, 2015, launched by the Narendra Modi government at the Centre.

"The differential global positioning system survey of the mines would be completed by October-end. Then tender papers would be prepared. The auction process would start by December," said director of mines Deepak Mohanty.

He said the state government has submitted a list of around 10 mines to the Centre for exploration so that these mines would be ready for auction in the subsequent phases.

While Central PSU Metal Scrap Trade Corporation would provide the online platform for the auction, investment bank and project adviser SBI Capital Markets Ltd (SBICAP) would be the transaction adviser. Decision regarding end-use of different mines would be decided by a committee headed by development commissioner U N Behera in November, official sources said.

"The OMC can explore mineral and sell it to small mineral-based companies in a fair and transparent manner," said steel and mines minister Prafulla Mallik.