Vedanta likely to apply for Niyamgiri afresh

Sources in the ministry said the Vedanta chief appealed to the minister to reconsider his decision of cancelling the forest clearance to the Lanjigarh bauxite mines and also scrapping of the expansion project. Agarwal urged Ramesh to take a relook at the ministry’s decision to withhold the Stage-II forest clearances to the mining project. The minister reportedly advised the Vedanta chief to make fresh applications for the purpose,the sources said.

According to a senior executive of Vedanta Resouces,the company will now explore the possibility of filing fresh applications. It will take legal opinion in this regard as the company has filed a case in the Orissa High Court challenging the ministry’s decision to cancel its expansion project.

The company would also keep the state government in the loop as the mining lease is with the state-owned Orissa Mining Corporation (OMC). Meanwhile,the state government has written two letters to the Union environment ministry urging the latter to consider stage-II clearance for the mining project.

Vedanta Aluminium (VAL),a Vedanta Resources Group company,has already set up a 1 million tonne alumina refinery at Lanjigarh. The company was proposing to ramp up capacity to 6 million tonne. VAL has entered into a joint venture with OMC through its sister concern Sterlite Industries (India) to develop the Lanjigarh bauxite mines in the nearby Niyamgiri hills.

The MoEF,however,scrapped the expansion project and denied Stage II clearance for the mining project following receipt of an adverse report from the NC Saxena Committee on the company’s environment and forest standing.