Report by Orissadiary correspondent; Bhubaneswar: The government has cleared the Pattangi bauxite mines for Nalco and recommended it to the Centre for final approval, Steel and Mines Secretary Ashok Dalwai Dalwai told the media persons here on Tuesday.
The Government has recommended the grant of Mining Lease (ML) for Potangi bauxite reserve in Koraput district in favour of the public sector National Aluminium Company Ltd (Nalco). Potangi is estimated to have bauxite reserves of over 70 million tonnes. However, the final ML would be granted after obtaining the prior approval of the Union government and subject to the company obtaining all the statutory clearances . The government has put some conditions for the public sector aluminium major before recommending Nalco's case for grant of ML.
The company has been asked to spend 5 percent of its net profit or Rs 10 crore, whichever is higher, on peripheral development. A Special Purpose Vehicle (SPV) would be formed for this purpose in line with the one formed by Vedanta Aluminium Ltd (VAL) at Lanjigarh. Though the details of the modalities for formation of the SPV have not been worked out, the Revenue Divisional Commissioner (RDC) is likely to be the chairman of the proposed SPV.
The Mining Licence would be given over an area of 1738.04 hectares and the company would be allowed to undertake mining outright as the area is part of the eastern bauxite belt which has been prospected. After consultation with the Orissa government, the Union Ministry of mines had reserved the area for mining by Nalco under the sub section 1(a) of section 17 (a) of the Mines and Minerals (Development and Regulation) Act, 1957. It may be noted, here that the Nalco had applied for bauxite mining lease over an area of 2618 hectares in August 1992.
Subsequently, the Ministry of mines reserved 1738.04 hectares for the company in April 2007. Since then the proposal was pending with the state government for grant of Mining Licence. The state government gave its nod after almost a decade of holding the application, for the Pattangi mines. The new mine is estimated to have bauxite reserves of over 70 million tones.
The new mine is close to the Nalco's existing bauxite mines at Panchpatmali. The bauxite reserve at the latter, which feed Nalco's refinery at Damonjodi in Koraput district, is expected to last only for another 20 to 25 years. Nalco, which desperately needed the new reserve to meet the future needs of its Damanjodi refinery, heaved a sigh of relief following the development. The Pattangi mines will be made operational within 3-5 years after getting Centre's clearance.
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