Orissa in possession of large bauxite reserve

Rejection of environment clearance by Centre to Vedanta's mining project has brought to focus the high quality bauxite deposits in Orissa, considered to have the fourth largest bauxite reserve in the world.
The total reserves of bauxite in the mineral-rich state are estimated at 1,530 million tonnes, spread over different sectors, industry sources said.
According to conservative estimates, about 20 million tonnes of bauxites are distributed in Keonjhar, Sundergarh and Phulbani districts, they said.
The remaining reserve is under the thick blanket below the thin capping of soil and laterite in Bolangir, Bargarh, Kalahandi, Rayagada and Koraput districts.
There are altogether six leases, four in Keonjhar and Sundergarh producing annually 17,000 tonnes and used in iron and steel making, official sources said.
The other two leases owned by public sector Aluminium behemoth NALCO in the Panchpatmali deposit of Koraput district
produce 2.4 million tonnes.
The state has decided in principle to lease out the bauxite mines to the prospective entrepreneurs through Orissa Mining Corporation (OMC) with the condition that they will set up alumina and aluminium industries in the state.
OMC also entered into an agreement with Utkal Aluminium Ltd for setting up an alumina plant in Rayagada district, official sources said.
However, most of the bauxite deposits are located in tribal-dominated areas, which makes it tough to obtain forest and environment clearane for carrying out mining operations, they said.
The Centre yesterday announced the decision to reject environment clearance to Vedanta's bauxite mining project in
Niyamgiri area of Kalahandi district on the ground that there
has been serious violation of Environment Protection Act and
Forest Conservation and Rights Act.
Orissa government had signed an MoU with Vedanta for setting up an integrated Alumina and Aluminium complex along with the associated captive power plant in the state.
A company official said the MoU also included supplying 150 million tonnes of bauxite for Vedanta's alumina refinery at Lanjigarh.
Vedanta is currently operating its alumina refinery with outsourced bauxite.
In view of the hurdles before proposed mining in Niyamgiri, the official said, the state government is actively considering allocation of alternate source of bauxite to it's alumina refinery