The government of eastern Indian province Odisha has decided to offer long-term bauxite supply linkages throwing a lifeline to Vedanta Ltd., which operated a refinery and smelter in the region.
Odisha, which has bauxite reserves estimated at 1.97 billion tons, but produces a mere 9.2 million tons per year, has tweaked its laws where the government-owned miner, Odisha Mining Corp. Ltd. (OMC), would offer 30% of its annual production of bauxite for merchant sale through e-auction and the bulk 70% would be supplied to user industries like Vedanta under a long-term Memorandum of Understanding at prices discovered at the auctions.
