Nalco to get Potangi bauxite mining lease

The Orissa government will grant the Mining Lease (ML) for Potangi bauxite reserve in Koraput district to the public sector National Aluminium Company Ltd (Nalco) soon.

The state steel and mines department is processing the proposal for government order in this regard. The ML would be given over an area of 1738.04 hectares. Since the area is part of the eastern bauxite belt which has been prospected, the company would be allowed to undertake mining outright, sources said.

After consultation with the Orissa government, the Union ministry of mines had reserved the area for mining by Nalco under the sub section 1(a) of section 17 (a) of the Mines and Minerals (Development and Regulation) Act, 1957. The grant of mining lease comes as a booster to the Navratna company planning ambitious expansion plans.

 

It may be noted, Nalco had applied for bauxite mining lease over an area of 2618 hectares in August 1992. Subsequently, the ministry of mines reserved 1738.04 hectares for the company in April 2007. Since then the proposal was pending with the state government for grant of ML.

In September this year, the Centre accorded prior approval to the proposal of Andhra Pradesh government for grant of ML to Nalco for Gudem and Katamraju Konda bauxite blocks. These deposits are estimated to have 85 million tonne of bauxite reserves.

Nalco plans to build a 1.4 million tonne greenfield alumina refinery based on the Gudem and KR Konda bauxite deposits in Visakhapatnam district of Andhra Pradesh.

The project is estimated to cost Rs. 6000 crores. Recently, the company signed a MoU with the state owned Nuclear Power Corporation of India Limited (NPCIL) for setting up a nuclear power plant in the country.

It will have a capacity of about 1000 Mw to 1400 Mw and will come up as a joint venture with Nalco’s stake being upto 49 percent.