Orissa CM assures bauxite for Vedanta's refinery

Unable to extract bauxite from Niyamgiri hills for Vedanta's refinery due to stiff opposition from tribals, the Orissa government has assured the company not to worry over the raw material.

"He (Naveen) has promised and said we are sitting on world's fourth largest bauxite reserve. Bauxite should not be a problem," Vedanta Chairman Anil Agarwal said after meeting the Orissa chief minister last night.

Agarwal told Patnaik that Vedanta's refinery at Lanjigarh in Kalahandi had started production and the company had been importing bauxite from other places to run the plant.

"We are waiting for bauxite from the mother state and importing it from outisde," he said seeking state government's support to start exploration of bauxite at Niyamgiri hills.

Quoting the chief minister, Agarwal said: "We will provide all bauxite for your refinery. And the process is on".

During his discussion with Patnaik, the company chief also pointed out that Vedanta had already invested Rs39,000 crore in the state and provided employment to about two lakh people, both direct and indirect.

Though the Supreme Court had already cleared hurdles before mining activities at Niyamgiri, the joint venture company, comprising the state owned Orissa Mining Corporation (OMC) and Vedanta's subsidiary Sterlite, failed to start exploration due to opposition from the tribal community.