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OMC floats tenders to develop Kodingamali bauxite lease

Proposed mine expected to come to the rescue of alumina units struggling to arrange raw material from local sources

Jayajit Dash  |  Bhubaneswar 

bauxite mining, bauxite
Representative Image.

Corporation (OMC) has floated tenders to start operations from its Kodingamali lease.
In the first year of operations, OMC, a state-run entity, targets to produce 1.5 million tonnes of From second year onwards, the output is set to expand to three million tonnes per annum (mtpa), said a government official close to the development.

The commencement of operations at the Kodingamali mine would mark OMC's foray into Though has a few mines in its kitty, yet the mines have not been able to start operations as they lack the regulatory clearances. deposits at Karlapat and Sasubohumali are reserved in OMC's favour but these have not opened up for want of environment and forest clearances.

from Kodingamali is also expected to come to the rescue of alumina units struggling to arrange raw material from local sources, notably the Lanjigarh refinery owned by The Lanjigarh refinery is currently fed entirely by sourced from other states and also imports. Ever since local tribals nixed the proposed plan of beginning operations in the bauxite-laden in south Odisha, has been struggling to arrange to run the refinery. The company has also been pleading with the government to make arrangements for local sourcing.

The Kodingmali lease with 81 million tonnes of reserves could potentially position as a long-term supplier of like iron ore and chrome ore. Apart from Vedanta, the Andhra Pradesh-based Anrak Aluminium, a joint venture of the Penna Group and Ras-Al-Khaimah Investment Authority (UAE), has turned to for supplies. has already installed its alumina refinery of 1.5 mtpa capacity at Makavarapalem in Andhra Pradesh, on the promise of assured supplies from the Andhra Pradesh Mineral Development Corporation (APMDC). But, as supplies ebbed, has sought allotment of resources of 150 million tonnes. The company has suggested that mines may be allotted to OMC, preferably on the Odisha-Andhra Pradesh border to meet the demand of the firm.

However, OMC's priorities on supplies have not been firmed up yet. "We are yet to take a call on which industries would be sourcing from OMC", said the official.

The Kodingamali lease of is spread over an area of 428.31 hectares (ha) in Koraput and Rayagada districts.

First Published: Fri, September 22 2017. 00:58 IST