Vedanta for the first time receives bauxite from Kodingamali mines, hopes to get more

After managing to run 2 million tonnes per annum refinery for past 10 years with bauxite sourced from several parts of the state and abroad, the aluminium major The Vedanta Limited for the very first time received the raw material from OMC’s Kodingamali mines recently, reported Vedanta’s external affairs head Sanjeev Kumar to PTI.

According to the report, The Vedanta is now optimistic about the completion of its Lanjigarh refinery expansion project on receiving bauxite from the state-owned Odisha Mining Corporation.

The refinery was importing bauxite from countries like Brazil and Guinea and states like Andhra Pradesh and Gujarat, said Mr. Kumar added to it that due to the shortage of raw material supply, the refinery could utilise 1.2 million tonnes of capacity every year out of 2 million tonnes.

The company in the meanwhile began to expand the production capacity from 2 million tonnes to 4 million tonnes and subsequently to 6 million tonnes by 2021. So far, it spent about INR 5000 crore on the expansion project, source said.

Mr. Kumar further added, "Though OMC at present meets only five percent of our bauxite requirement, we look forward to get more raw material by taking part in auctions of other mines in Odisha."

The Vedanta is reportedly optimistic about getting 3 million tonnes of bauxite, which is 50 per cent of its need, from the OMC by the end of the year.

Asked whether Vedanta still hopes to get bauxite from Niyamgiri hills, Kumar said "we are not looking for Niyamgiri now. It is insignificant for us. However, the company will like to participate in any auction within Odisha."

He further explained that the company did not start its refinery expansion project depending upon Niyamgiri or any other mines. Odisha has about 700 million tonnes of bauxite reserves; many of which are still unexplored.