Uncertainty clouds Kansariguda alumina refinery as bauxite concerns mount

Bhubaneswar,(Kalinga Voice) : The future of the ambitious Kansariguda alumina refinery is now mired in uncertainty as concerns over the long-term availability of bauxite from the Kodingamali mines intensify. The project, which commenced construction just two months ago, has raised alarm among local communities, industry stakeholders, and experts, as fears grow that the raw material essential for its operations may be exhausted sooner than anticipated.
Spanning 2,200 acres across Lakshmipur in Koraput district and Kashipur in Rayagada district, the Rs 8,000-crore refinery was initially hailed as a catalyst for regional development, promising job creation and economic upliftment. Local residents had leased their land with hopes of a brighter future, but the emerging resource constraints now cast a shadow over these expectations.
The Odisha Mining Corporation (OMC) had committed to supplying bauxite from Kodingamali under a 15-year agreement ( till the exhaust of the mines) with the company constructing the Kansariguda plant. However, with the mine currently producing 3 million tons of bauxite annually and a pending application to increase this to 4.2 million tons, experts warn that the estimated 81-million-ton reserve may not last as long as planned. The prospect of depletion in the coming years raises critical questions about the refinery’s sustainability and the economic viability of the project.
Despite infrastructure work progressing rapidly, the refinery’s completion remains at least three years away. If bauxite extraction continues at the current rate, operational challenges could emerge, threatening the long-term viability of the plant. The uncertainty has triggered anxiety among company officials, local communities, and intellectuals, with growing fears that the project may not fulfill its promises.
As discussions intensify, there is rising discontent among local stakeholders, with indications that protests could erupt if the anticipated development and employment benefits fail to materialize. The future of the Kansariguda refinery now hinges on decisive action to secure a sustainable bauxite supply, ensuring that the ambitious project does not turn into a missed opportunity for the region.