The second most used metal in the world after steel is aluminium. It is also called the 'metal of the future.' Aluminium comes from alumina and alumina comes from bauxite. The mineral year book of IBM says the per capita consumption of aluminium in India is 2.5 kg, which is below the world average of 8 kg. South Korea,Bahrain, Germany, Italy and China consume over 25kg as per the technology vision document 2035. There has been an increasing demand for aluminium for metallurgy, chemicals, aerospace, railway, defence, solar, automobile, cement, refractories, abrasive, steel and petrol industries, raw materials in construction of buildings and roads, electrical power transmission, machinery, equipment, packing and furniture etc. It will be more in demand with global economic growth.
China alone contributes more than 55 percent of the world aluminium production. The international price of aluminium per kg is 2.60 USD.
The total bauxite reserve of the world was estimated at 32 billion tonnes by the USGS and is located in countries including Australia, Guinea, Vietnam, Jamaica, Brazil, China, and India. The world production of bauxite was 368 million tonnes in the year 2020. As per mineral index data base, India’s reserve was 4,958 million tonnes. India is the 6th largest bauxite producing country.
Odisha emerged as the leading producer State, accounting for about 76 percent of the total production during 2021. Odisha’s south -west part alone accounts for 42 percent of the country’s bauxite resources followed, by Chhatisgada, AP, Gujarat, Jharakhand, Maharashtra and MP. The production of bauxite in the year 2020-21 was 20,468 tonnes extracted from 144 mines. The share of the public sector was more than 50 percent and mostly Nalco is the leading producer, having a 36 percent share in the total production.
The production value of bauxite in 2021 was Rs 1,667 crore out of which Odisha's share was Rs 1,233 crore. The production of bauxite and its refinery, smelter to produce aluminium have created scope for employment for thousands of people. As per IBM data, bauxite mining alone employs about 7,000 people. The Government, along with mineral royalty, corporate tax , host of other taxes, also gets profits from public sector companies such as Nalco and OMC engaged in mining and other works. Private companies such as Utkal Alumina International have mines in Rayagada. It has a lease period up to 2048. Vedanta Resource Limited has an alumina refinery at Langigada and aluminium smelter at Jharasuguda. Through disinvestment move it has taken over BALCO in Korba of Chhatisgarh. The company has won a bid to mine bauxite in Kalahandi and Rayagada. These companies have already access to coal mines for thermal power plants.
The mineral-based economy with a global market pays benefits to lease holders, stockists, traders, exporters, transporters, business people and many others who are directly or indirectly connected to the bauxite, alumina and aluminium sector. But this huge, well-grown global bauxite market is not sharing the development with the people in mineral bearing areas to improve their economic condition while they are uprooted from their habitation and primary sources of livelihood.
The south-west bauxite belt of Odisha, with 95 percent of the bauxite resources of the State, covers mostly the poorest districts of Odisha such as Koraput, Malkangiri, Rayagada, Kalahandi, Bolangir, Bargarh, Kondhamal, Sundargada, Keonjhar and Maurbhanj.
The State Government has made a number of agreements with companies for bauxite mining, refineries, smelters and captives to be operated in different parts of the State for which the supply of bauxite is required. Social and environmental audits from mining areas such as Jharasuguda, Angul and Keonjhar show a backlash of mining that contributes to increased vulnerability among the locals, especially the historically marginalised sections who are defence less in fighting the State and corporate houses in defence of their rights and basic entitlements.
The districts with bauxite reserves are mostly inhabited by a majority of the ST population along with SCs and other marginalised sections whose primary source of livelihood is hills, forest-NTFP, river, agriculture and animal husbandry. Some areas enjoy the status of 5th schedule having more than 50 percent of the ST population but their social and human development indicators show that nothing has substantially changed, especially in the sources of livelihood of the majority of the population, including health, education and quality of life. Even with special budgetary provision of sub-plan approach, these areas remain backward. The undivided koraput districts is placed among the poorest districts of the country and Malkangiri district is on the top in the list of the poorest with huge malnutrition problem, child death , distress migration and middle age diseases.
There is a higher rate of poverty and a higher percentage of people are below the poverty line, which is higher than the State average and STs and SCs are more prone to high poverty level in comparison to other social groups of the State. Land alienation and denial of land titles to the early settlers of these areas remain an unfinished task. The traditional rights of the locals over land, forest -FRA and other resources have not been recognized . Out of total 10 States having 5th scheduled areas, 9 States have made PESA rules. Though Odisha has half of the geographical areas in 5th scheduled and about one-fourth of the total population belonging to tribals, it has not yet made PESA rules that gives power to the locals.
Many of the mega projects in south-west Odisha have not brought any major change in the lives of the locals. Rather many families have lost their traditional livelihood and are not suited to accommodate the new kinds of job opportunities being created by mining and industries through affirmative action policy and training on skill development. The proper rehabilitation of the displaced families and growing pollution is still a major issue of almost all mining and industrial areas of the State. Environmental laws have not been followed, such as EIA and public hearings.
The people are not democratically consulted over rehabilitation and resettlement and their opinions are not being considered by elected representatives of the ruling parties. Social activists and others concerned are branded as anti-development and their concerns for human rights and environmental issues are being undermined and viewed as anti-industry. Mining has pushed the inclusive development debate to the periphery and the concern for the poor, marginalised and affected people has not become part of democratic debate on the economic development of the State.
The people of these areas also witnessed extra judicial killing of hundreds of innocent people being victimised and trapped in false cases without an impartial trial. In the plea of fighting Left-Wing Extremism (LWE), many innocent people suffered in the hands of police and paramilitary forces, such as OAPF, CRPF, BSF, SOG and CoBRA.
