Indian state of Orissa takes tougher line on new alumina refineries

The state of Orissa in the east of India is taking a tougher line on companies wanting to use its huge bauxite reserves to build alumina refineries. It is now insisting that would-be investors commit to smelting as well. The latest company to receive the cold shoulder from the state government is BHP Billiton, according to local media reports. Its head of operations in India gave last week a presentation to state officials on a proposed $3 billion alumina refinery in Gopalpur. However, the company was asked to think again as to how it might add more value than simply converting bauxite to alumina. Other investors have been told the same with Orissa now insisting that it will only release bauxite reserves for development if the project is integrated to at least the primary metal stage.