Vedanta wins bid to buy bauxite from GMDC

UK-based Vedanta Resources, whose attempts to mine bauxite in Orissa's Niyamgiri hills faced a legal setback, has won a bid to acquire over 5 lakh tonne of the mineral from Gujarat Mineral Development Corporation (GMDC).

"Vedanta has won the bids for sourcing over 5 lakh tonne of non-plant grade bauxite from our Gadhshisa mines in Kutch," GMDC Managing Director G S Gadhvi told PTI.

"The company shall be lifting over 50,000 tonnes of non-plant grade bauxite monthly over the next nine months from Ghadsisa mines in Kutch, and shall be transporting it through the sea route," official sources said.

"The mining shall be done by GMDC only," a GMDC official said.

In August, the Union Environment Ministry axed the Vedanta Group's $1.7 billion bauxite mining project in Niyamgiri hills in view of violations at the site. The company was to carry out mining through its subsidiart Sterlite India.

GMDC had invited bids last month for sale of over 9 lakh tonne of bauxite reserves, available with it this year and Vedanta was one of the bidders.

"While, Vedanta has won the bid for procurement, the others in fray are still awaiting a decision of the GMDC internal committee on allocation," sources said.

"GMDC will receive Rs 33 crore through this sale, while the Gujarat government is expected to earn a handsome royalty on it," they said.

Currently, the state gets royalty of Rs 120 per tonne on the sale of bauxite, which keeps varying from time to time, sources at GMDC said.

Vedanta has stepped up sourcing of bauxite from other states of India including Gujarat to run its 1 million tonne per annum alumina refinery at Orissa's Kalahandi district, after it was denied mining rights in Niyamagiri.

According to industry sources, the Orissa alumina refinery needs 3 million tonnes of bauxite to run full capacity. The company is sourcing bauxite from states such as Chhattisgarh, Jharkhand, Andhra Pradesh and Gujarat to meet operational requirements.

Meanwhile, GMDC has got environmental clearance from the Union Ministry of Environment and Forest for carrying out mining at the Mewasa group of mines in Jamnagar district, which is estimated to have bauxite reserves of 5 lakh tonne.

"We are likely to begin mining at Mewasa by this year end," Gadhvi said adding that the mining could begin before December.