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Relief for alumina units: OMC expects to open key bauxite mine in 2 months

Once the mine is operational, alumina units will be able to source the key but scarce input from the Odisha-govt owned firm

Jayajit Dash  |  Bhubaneswar 

Representational image
Representational image

State-run entity (OMC) hopes to start mining at its Kodingamali quarry within two months, a top company official said.

The opening of the Kodingamali lease would mark OMC's entry into mining. As of now, it is an established player in and excavation. Though OMC has a few other mines in its kitty, they have not been able to start operations as they lack the regulatory clearances. deposits at Karlapat and Sasubohumali, despite being reserved in OMC's favour, have not opened up for want of environment and forest clearances.

"We have all clearances in place for Kodingamali. Hopefully, mining activity will take off in two months”, said R Vineel Krishna, managing director, OMC.

mining from Kodingamali is expected to come to the rescue of alumina units, such as the owned by Vedanta, which are struggling to source raw material locally. The Lanjigarh unit is currently fed entirely by sourced from other states and abroad. Ever since local tribals nixed plan to mine the bauxite-laden hills straddling Rayagada and Kalahandi districts in south Odisha, has been struggling to arrange to run the refinery. The company has also been pleading to the Odisha government to make arrangements for local sourcing.

However, OMC has ruled out any special arrangement with for supplies.

"Companies can source from OMC at auctions or through long-term linkages. Industries without captive sources can buy from us,” Krishna said.

The Kodingamali lease, which has 81 million tonnes of reserves, could potentially position OMC as a long-term supplier of like and chrome ore. Apart from Vedanta, Andhra Pradesh-based Anrak Aluminium, a joint venture of the Penna Group and Ras-Al-Khaimah Investment Authority (UAE), has also turned to OMC for supplies. has already installed its alumina refinery of 1.5 mtpa capacity at Makavarapalem, Andhra Pradesh, on the promise of assured supplies from Andhra Pradesh Mineral Development Corporation (APMDC). But, as local supplies dimmed, has been forced to rely on OMC.

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

First Published: Tue, February 20 2018. 15:57 IST