Odisha pitches for Pottangi bauxite mines allocation for Nalco; fresh bid for Niyamgiri on cards

Indian aluminium major National Aluminium Company (Nalco) has inched closer in its bid to bag the Pottangi bauxite deposits with the Odisha government writing to the Union mines ministry to allocate the mines in favour of the central PSU.

"We have already written to the Centre to allocate Pottangi mines in favour of Nalco. The DGPS Differential Global Positioning System) survey for the mine will be carried out by Nalco'', said director (mines), Odisha, Deepak Mohanty.

The Pottangi bauxite mines, with 70 million tonne deposits, has already been reserved for Nalco since 2007. Nalco would source bauxite from these mines to feed its new refinery stream.

The Navratna company is adding the fifth stream of one million tonne per annum (mtpa) capacity to its existing alumina refinery at Damanjodi in Koraput district at a cost of INR 6,000 crore. The new refinery is expected to be commissioned by 2018. Presently, Nalco has a capacity to refine 2.25 mtpa of bauxite per annum at its Damanjodi facility located at the foothills of its Panchpatmalli bauxite lease.

Recently, Nalco had submitted INR 300 crore CSR (corporate social responsibility) package to the state government for the Pottangi deposits.

Nalco has also lined up an investment of INR 30,000-35,000 crore on its various investment projects in Odisha. Apart from the new refinery stream, the company is investing INR 22,000 crore on 0.5 mtpa smelter plant and 1,050 Mw captive power plant (CPP) in Sundargarh district.

Revival of Niyamgiri mining plan:

In another development, Odisha government has been also said to be contemplating to revive its proposed mining project at Niyamgiri Hills and hold Gram Sabha in the area again.

The state government wants the state owned Odisha Mining Corporation to undertake the bauxite mining at Niyamgiri and supply the ore to the needy aluminium industries.

The Niyamgiri Hills have about 75 million tonnes reserves of high grade bauxite, the most important ore of aluminium.