Centre hikes bauxite output limit of only non-captive mine in Odisha

The Union Ministry of Environment, Forest and Climate Change has granted environmental clearances to KJST bauxite and iron ore mines situated in Koira mining circle of Sundergarh district to enhance mineral output.

"I have got approval for extracting iron ore upto 2 million tonne, up from existing 0.7 million tonne (mt) per year, and for bauxite, the approval is for 130,000 tonne a year, up from 50,000 tonne clearance permitted earlier. The hike approval will surely help industries who depend upon these minerals," said Prabodh Mohanty, leaseholder of the mines.

The KJST mines, although a smaller one, is the lone supplier from Odisha to Vedanta's one million tonne per annum (mtpa) alumina refinery at Lanjigarh in Kalahandi district. The aluminium maker depends upon mines of Chattisgarh and Gujarat to feed its refinery.

The other bauxite mine operators of the state--Hindalco and National Aluminium Company (Nalco) use their leases for captive consumption.

The approval will, however, not result in immediate enhancement in mining output as the leaseholder is yet to receive consent to operate clearance from Odisha State Pollution Control Board (OSPCB).

"I am expecting that the OSPCB approval will come by August. The increased output will happen after that," Mohanty added.

The latest approval for raising mineral output is part of the state government's proposal sent in November to allow miners with operational leases to ramp up output by 16 mt following sharp fall in output after the closure of iron ore and manganese mines following a Supreme Court order in May 2014.

The government had recommended the mineral output enhancement applications of several mine owners last year.

In January this year, the Centre had granted permission to increase iron ore output of three leases-Rungta (two mines) and Serajuddin (one mining lease). Rungtas now have environment clearance (EC) to extract 6 mt additional iron ore per year over and above existing clearance for upto 3.5 mt, while Serajuddin can now extract 15.15 mt iron ore a year, against 4.5 mt approved capacity.

Iron ore output in Odisha received a heavy jolt in May last year, when the Supreme Court asked to shut down 26 mines operating without valid mining leases. The state government has so far signed agreements to extend lease validity of 17 mines out of 26 mines. The suspension of key mines had reduced iron ore output in the state by around 40 per cent to 47.73 mt in 2014-15, the lowest in last 10 years.