Orissa has few options for saving refinery

  • 25/08/2010

  • Financial Express (New Delhi)

Dilip Bisoi Bhubaneswar, THE GOVT MAY THINK OF LINKING SASUBAHUMALI MINES WITH THE VEDANTA PROJECT. SASUBAHUMALI IS ALSO EMBROILED IN LITIGATION With the Niyamgiri mines out of reach, the Orissa government may think of allotting an alternative bauxite mines to Vedanta Resources in order to save at leastthe1-million-tonnerefinery at Lanjigarh. But, in that case, it has limited option as most of the big mines are now blocked by other companies. While the central sector National Aluminium Company (Nalco) is sitting over Kodingamali and Potangi mines in Koraput besides its 310 million tonne Panchpatmali reserve in the same district, Hindalco's Utkal Alumi na has been allotted the Baflimali mines in Rayagada. The Baflimali mines in Rayagada promises a reserve of 200 million tonne, while the Kodingamali and Potangi mines in Koraput district have about 100 million tonne and 69 million tonne, respectively . Interestingly, the state government is fighting a bitter battle with Nalco over Kodigamali mines so that the same can be allotted to Aditya Aluminium which is setting up a 1 million tonne refinery at Doraguda in Rayagada district. The 200-million-tonne Kuturmali-Sijumali mines in Rayagada-Kalahandi districts has been alloted to L&T. The only big mine which is available is the 200 million tonne Gandhamardan bauxite deposits in Bolangir district. But, the problem with Gandhamardan is that the environmentalists are more active here. It was in 1980s, that the Gandhamaradan Bachao Movement forced the central sector Bharat Aluminium Company (Balco) to abandon its programme to source bauxite from here. The Orissa government may think of linking the nearby Sasubahumali mines with the Vedanta project. Sasubahumali, which promises about 81 million tonne, is also embroiled in litigation as several companies are staking their claim in the mines. In fact, early this year, the central government wanted to reserve Sasubahumali mines in favour of Balco with a view to improve its value when Sterlite Industries, now a Vedanta group company , successfully had bid for its stake. "There are small patches of bauxite mines with 30 to 40 million tonne of reserve. But, those would not be suitable for an alumina plant of 1 million tonne," said RP Panda, an expert on mineral wealth of the state.