SC clears Sterlite, Posco projects in Orissa

08 August 2008

Mumbai: The Supreme Court today cleared the diversion of  forest land for Sterlite's bauxite mining project and land acquisition for Korean steel giant Posco's 12-million tonne steel plant in mineral-rich Orissa even as opponents of the projects vowed to continue their agitation.

The SC order allows Sterlite, owned by of UK-based Vedanta Resources Inc, to mine bauxite in the Niyamgiri Hill in Kalahandi district to feed an alumina refinery it already built nearby.

Sterlite's Vedanta Alumina, part of the Vedanta Resources Group, is building an $800 million alumina refinery in Kalahandi and an aluminium smelter project costing Rs7,000 crore in Jharsuguda district.

The court also approved the diversion of 3,097 acres of forest land for the Rs50,000 crore ($12 billion) Posco steel plant in Jagatsinghpur district. It also allowed Posco to buy iron ore from the market for its factory, in addition to procuring the material from Orissa Mining Corporation.

The court has, however, separated the issues of setting up of the plant and procurement, said Janakalyan Das, the Orissa government's counsel.

In its order, the bench headed by Chief Justice KG Balakrishnan said Sterlite Industries (India) Ltd had met the Supreme Court's terms for a bauxite mining project.