Bauxite dispatch to Hindalco units paralysed

Dispatch and transportation of bauxite from mines in Gumla and Lohardaga districts of Jharkhand to Hindalco’s integrated plant in Renukoot in Uttar Pradesh and another plant in Muri in Jharkhand has come to a standstill since November 8.

When contacted by Business Standard today, K K Dave vice-president, Lohardaga mines division of Hindalco said that dispatch of bauxite could not be undertaken because of Naxal menace.

He said, "We are somehow managing our few trucks to transport bauxite to our Muri plant with police escort. But it will not help the requirement of the Muri unit," he added.

Dave said that a few days ago a statement from the People’s Liberation Front of India (PLFI) appeared in the local media asking Hindalco to stop its activities in Jharkhand.

The Hindalco official further said that the main reason behind the disruption in dispatch and transportation of bauxite was fear of rebels in the area.

He said that on an average 2,500-3,000 tonnes of bauxite were transported daily to Hindalco’s units.

He expressed concern that disruption in movement and transportation of bauxite from the mines in Jharkhand would affect production both Muri and Renukoot plants.

He refuted the allegation that there was some dispute between transporters and truck owners of the region and it was a coincidence that the rebel attack and payment-related dispute occurred simultaneously.

Dave said that Hindilco’s Jharkhand units had been facing the Naxal menace most of the year.

It may be mentioned that in May 12 last year, six trucks were set on fire by the rebels in Ghagra in Gumla. On August 18 last year, mining equipment and vehicles were destroyed. On August 4 this year, Naxalites burnt three trucks carrying bauxite in Jharkhand’s Lohardaga district during the five-day state shutdown.

On October 31 this year, suspected PLFI rebels torched equipment in Serendag mines in Gumla.

Hindalco has leases in four functioning major bauxite plateaus of Lohardaga and Gumla. Besides, it has two leases in Latehar.

Besides, many other private mines operate in Gumla district.

Bauxite from Lohardaga and Gumla is ferried to Hindalco plant in Renukoot that has a metal production capacity of 35 lakh tonnes while Muri unit produces 5 lakh tonnes alumina per annum.