Odisha mining corp on track to be a long-term bauxite supplier

The state-run entity engaged in iron ore supplies to steel plants both within and outside the state

Odisha Mining Corporation (OMC), a state-run entity engaged in iron ore supplies to steel plants both within and outside the state, is on course to be a long-term bauxite supplier to aluminium producers operating without captive leases.

The central mines ministry has approved the reservation of the Sasubohumali bauxite mines with deposits of 81 million tonne (mt) in favour of OMC. Also, the Centre had earlier reserved Karlapat mines with 207 mt of bauxite reserve. With two bauxite mines in its kitty, OMC is well positioned to cater to the bauxite requirement of the aluminium units.

"The Centre has approved our request to reserve Sasubohumali bauxite mines for OMC. We would take steps to issue composite license (prospecting license cum mining lease) to OMC. The Karlapat mines have also been reserved in OMC's favour. OMC can become a long-term supplier of bauxite to aluminium plants both within and outside Odisha", said a senior government official.

The Sasubohumali bauxite mines in Rayagada district has an estimated bauxite reserve of 81 million tonne.

The ministry had recently allocated the Karalpat bauxite mines to OMC. The Karlapat bauxite mines spread over 3,002.49 hectares has estimated reserves of 207 million tonne, which includes 153 tonne proven reserve and 54 million tonne probable reserve. The state government had sought reservation of the bauxite mines for 30 years, arguing that it will ensure fair and equitable distribution of the raw material.

Besides, the government felt such an arrangement will help accrue more economic returns for the state by way of royalty, taxes and dividend, thereby providing more funds for developmental activities.

Reservation of bauxite mines for OMC can come to the rescue to aluminium makers in the state, particularly Vedanta that has been running a one million tonne alunmina refinery without any lease. Besides, OMC can also supply bauxite to players like Anrak Aluminium Ltd.