OMC to supply bauxite to Hindalco, Balco and Anrak

At the commencement of e-auctions, Odisha Mining Corporation offers 190,000 tonnes of bauxite secured from its Kodingamali mines in Southern Odisha. This maiden attempt of OMC to sell bauxite at e-auctions has evoked buying interests from many alumina refinery owners, both within and outside the state.

"We have received the participation of BALCO (Bharat Aluminium Company), Hindalco for its units at Muri and Belgaum and Anrak Aluminium at the bauxite e-auctions. As per the policy finalized, 30 per cent of our saleable bauxite would be liquidated through auctions”, said R Vineel Krishna, managing director, Odisha Mining Corporation (OMC).

This is not the first time Anrak Aluminium has decided to source bauxite from OMC. Earlier also, the refinery had turned to Odisha Government for a solution to its bauxite supply when it had established an alumina refinery at Makavarepalem (Andhra Pradesh) with an annual capacity of 1.5 million tonnes. Initially, the refinery had decided to haul bauxite from Andhra Pradesh Mineral Development Corporation (APMDC), mandating supply of 224 million tonnes, but later on, the deal failed to materialise. In spite of the completion of the refinery construction work, the project could not start due to the indecision of its bauxite supply.

OMC has started its Kodingamali mines operations, with a plan to auction 30 per cent of the mined ore and sell the remaining 70 per cent via long-term linkage. This long-term linkage would benefit only Vedanta as the two other state-based aluminium makers Nalco and Hindalco source raw materials from captive bauxite supplies. The floor price for the national e-auction would be the production cost plus 50 per cent profit margin.