OMC floats tenders for Kodingamali bauxite lease

Odisha Mining Corporation (OMC) has floated tenders to start operations from its Kodingamali bauxite lease. In the first year of operations, OMC, a state-run entity, aims to produce 1.5 million tonnes per annum (mtpa). From second year onwards, the company plans to double its production, said a government official.

The commencement of operations from Kodingamali mine, which spreads over an area of 428.31 hectares (ha) at Koraput and Rayagada districts in Odisha, would mark OMC’s foray into bauxite mining. Though OMC has a few bauxite mines in its kitty, the mines have not been able to start operations as they lack the regulatory clearances. Bauxite deposits at Karlapat and Sasubohumali, despite being reserved in OMC’s favour, have not opened up for want of environment and forest clearances.

Bauxite mining at Kodingamali is also expected to come to the rescue of alumina units struggling to arrange raw material from local sources, notably the Lanjigarh refinery, owned by Vedanta. The Lanjigarh refinery is currently fed entirely by bauxite sourced from other states and also imports. Ever since local tribals nixed the plan to mine the bauxite-laden Niyamgiri hills straddling Rayagada and Kalahandi districts in south Odisha, Vedanta has been struggling to arrange bauxite to run its refinery. The company has been pleading to the Odisha government to make arrangements for local bauxite sourcing.