Vedanta wins two bauxite mines totalling 15 mtpa reserves in Odisha

Putting an end to Vedanta’s years-long bauxite hunt, the Government of Odisha has awarded two bauxite mines in the state. The two mines totalling 15 mtpa bauxite reserves will be able to take care of 75 per cent of Vedanta’s 20 mtpa bauxite requirement.

Vedanta has been involved in developing a bauxite mine in Odisha’s Niyamgiri hills in a joint venture with the Odisha Mining Corporation Ltd (OMCL); on completion it would have regularised bauxite supply to the company’s nearby alumina refinery in Lanjigarh. However, environmental activism and socio-political unrest kept posing hurdles to the project.    

With the receipt of lease for two bauxite mines, the company now hopes to ride over the roadblocks created due to raw material crunch and the excessive financial drain.

Expressing hope about a potential turnaround of his aluminium operations in India, Vedanta chairman Anil Agarwal said, "We have been pleading with the state for a long time. They have always been proactive. Now finally we can ramp up production and then expand the total capacity. I am very hopeful that the worst is over for us."

What the two new bauxite mines mean for Vedanta?

The output from the mine will help Vedanta process it into 6 mtpa of alumina, which it can then use to produce 3 mtpa of molten aluminium. Therefore, the mining and metal giant can now double its aluminium capacity from the current 1.75 mtpa.

Vedanta has already sought approvals for expansion of its alumina refining capacity at Lanjigarh unit to 6 mtpa from the state government.