Vedanta Aluminium, a unit of billionaire Anil Agarwal-controlled Vedanta Group, plans to shut its alumina refinery in Odisha from Dec 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 said.
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 percent 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.