The Indian state of Orissa has filed a Supreme Court case challenging the national government's decision to block Vedanta Resources' plan to mine bauxite in the region.
Last August the environment ministry in New Delhi struck down plans by the state-owned Orissa Mining Corporation (OMC) and Vedanta subsidiary Sterlite Industries to mine bauxite to supply Vedanta's nearby aluminium refinery.
The mine was rejected by environment minister Jairam Ramesh, who sharply criticised British company Vedanta for showing "blatant disregard" for local tribal groups in the eastern Indian state who deem the land as sacred.
Raghunath Mohanty, the steel and mines minister of Orissa, on Wednesday said the state would fight for the mine to be opened.
"The state government moved a petition before the Supreme Court on Tuesday challenging the ministry of environment's ban on bauxite mining in the Niyamgiri hills," he said.
Vedanta, whose goal of being a major global commodities player rests on development of its Indian assets, has suffered a series of setbacks in the country.
In October 2010 the environment ministry denied the company permission to expand its aluminium refinery in Orissa, citing opposition from locals who said it would wreck the area's fragile eco-system.
The company is also awaiting a decision by the central government on its proposal to buy a controlling stake in Cairn India, an energy company which has been developing the nation's biggest onshore oil field, the Mangala deposit in Rajasthan.
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