Vedanta Resources in talks with Gujarat Mineral Development Corp for bauxite

Anil Agarwal-led Vedanta Resources has initiated talks with the Gujarat government to ensure long-term supply of bauxite for its refinery in Kalahandi district of Orissa after its mining project in the Niyamgiri hills failed to get central government clearance on environmental grounds.

According to Mukhesh Kumar, chief operating officer of Vedanta Aluminium Ltd (VAL), the company was also prospecting the raw material in other states following the environment ministry's rejection of its mining plan near the refinery.

In an interview with news agency IANS, he said the group was trying to sign a pact with the Gujarat Mineral Development Corporation (GMDC) for supply of around 600,000 to 800,000 tonnes of bauxite per annum for its refinery. He added the GMDC had already agreed to offer 500,000 tonnes a year.

GMDC is a Gujarat government undertaking engaged in minerals mining and development of mineral-based industrial products.

He added that in the recent past the company had held several rounds of talks with officials from GMDC with encouraging results and in the next 15-20 days it would finalise something with GMDC.

Dimissing the company's proposal for a mining project in the Niyamgiri hills in Lanjigarh last week, environment and forests minister Jairam Ramesh said it would affect the environment and threaten the lifestyle of the tribes in the region