Vedanta to source bauxite from L&T mines

Following report is from TOI:

BHAWANIPATNA: The Vedanta Aluminium Limited (VAL) is hoping to tide over its raw material crisis at its refinery and smelter units in the state following the state government’s assurance to consider the possibility of bauxite supply from two mines allotted to Larsen and Toubro (L&T).

The move comes over three months after gram sabhas in Rayagada and Kalahandi rejected Vedanta’s bid to mine Niyamgiri bauxite reserves for its refinery.

On Tuesday, Vedanta group chairman Anil Agarwal following a meeting chief minister Naveen Patnaik said the CM assured bauxite for the company’s refinery project at Langigarh in Kalahandi district from L&T’s reserves. In the early 1990s, L&T got prospecting licence for Sijimali and Kutrumali mines, with a combined deposit of about 300 million tonne, in Rayagada and Kalahandi districts respectively. But the state government had then denied mining lease (ML) to it on the ground that the company no end-use plant.

L&T’s executive chairman A M Naik, who was present at the meeting with CM, said his company had signed an MoU with Vedanta for the Rs 12,000 crore joint venture project.

Official sources said the state government has to recommend to the Centre to give ML in favour of L&T so that bauxite could be sourced from the two mines for Vedanta’s refinery. VAL has a smelter plant in Jharsuguda.

Vedanta sources said the company has assured the state government of value addition in the form of alumina and aluminium if bauxite is sourced from Sijimali and Kutrumali through L&T.