Vedanta Aluminium Ltd, a unit of billionaire Anil Agarwal-controlled Vedanta Group, plans to shut its alumina refinery in Odisha from December 5 due to shortages of bauxite, a company official said on Thursday.
"We have sent a notice to the labour department today showing our intention to close the refinery on a temporary basis from 5th December," Mukesh Kumar, president of Vedanta Aluminium Ltd, told Reuters.
The company requires 10,000 tonnes of bauxite a day to operate its Lanjigarh refinery in Odisha state at full capacity of one million tonnes a year. The refinery is currently operating at 70% capacity.
"Since this plant is designed for Odisha bauxite, availability of bauxite from Odisha only can ensure sustainability of this plant's operation," he said.
India, the world's fifth-biggest bauxite producer, has been limiting the issuance of bauxite leases mainly due to local protests over land acquisition. Odisha has the largest reserve of the resource.
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