BHUBANESWAR: THE State Government today said about 76 million tonne (MT) of bauxite is mineable out of an estimated 88 MT of the mineral reserves at Niyamgiri hills in Kalahandi district.
“There is no question of making plans to explore half of the mineral reserves in Niyamgiri as apprehended by some,”
Steel and Mines Minister Raghunath Mohanty said to a question in the Assembly today.
Though the Geological Survey of India (GSI) had earlier estimated a reserve of 53 MT of bauxite at Niyamgiri hills
between 1970-80, Mineral Exploration Corporation Ltd (MECL), another Central undertaking, re-estimated the reserve in 2003-04 at 88 MT, the minister said.
Stating the State-owned OMC had entered into an agreement with Sterlite Industries Limited (SIL) for exploration of bauxite from Niyamgiri hills, Mohanty said the mining project was planned to be implemented through a joint venture named as South Orissa Bauxite Company.
The State Government along with SIL was planning to mine bauxite from Niyamgiri hills in order to meet the requirement of Vedanta’s alumina refinery at Lanjigarh in the district.
OMC would pay sales tax to the State Government for the bauxite explored from Niyamgiri reserve.
“SIL will give the sales tax amount to OMC in advance,” Mohanty said rejecting allegation that the State’s interest was sacrificed for Vedanta Group.