National Aluminium Ltd, Bhubaneswar-based integrated PSU aluminium maker, said on Monday that operations at its bauxite mine at Panchpatmali in Koraput district of Odisha was stopped on Saturday in the absence of mine lease renewal.
The 30-year-mining lease expired on Friday. The Nalco spokesperson told Business Lin e over phone that Nalco had filed application for renewal in October 2010.
“In February this year, Nalco also had filed application for temporary work permit for one year,” the spokesperson said.
He said the lease renewal is expected by the end of this month.
“We have stock pile of bauxite ore which may last for three weeks in feeding our refinery at Damanjodi (also in Koraput),” the official added.
If the ore disruption continues beyond the period then operations at the refinery have to be stopped.
The Panchpatmali mine has over 310 million tonnes of bauxite reserves. Nalco produced 50.03 lakh tonnes (lt) of bauxite, 16.87 lt alumina and 4.13 lt aluminium in 2011−2012.
Panchpatmali is the lone mine that Nalco has at present. It has been trying to obtain additional assets in Odisha and Andhra Pradesh for nearly a decade.
But it so far could not manage to secure any addition captive mine.
The listed Nalco was promised the temporary permit before the lease term expiry.
The Rs-5 Nalco stock closed flat at Rs 45.
jayanta.mallick@thehindu.co.in