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The total reserves of Bauxite in the State are estimated at 1,530 million tonnes at +40% Al2 03 and 5% SI02 cut -off.
Excepting 20million tonnes distributed in Keonjhar, sundergarh and Phulbani districts, the balance reserve occur as thick blankets below a thin capping of soil and laterite in the districts of Bolangir -Bargad, Kalahandi, Rayagada and Koraput, quite amenable to mechanised opencast mining.
There are altogether six leases, 4 in Keonjhar and sundergarh producing annually 17,000 tonnes and used in iron and steel making.
The other 2 leases owned by NALCO comprising the Panchpatmali deposit in Koraput district produce 2.4 million tonnes.
The State Government have decided in principle, to lease the bauxite mines to the prospective entrepreneurs through Odisha Mining Corporation with the condition that they will set up Alumina / Aluminium industries in the State. The OMC has entered into an agreement with M/s Utkal Alumina Ltd. to set up an Alumina Project in Rayagada district.


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