Billiton seeks to mine Orissa bauxite, alumina

BHP Billiton, the Anglo-Australian, $19 billion, Fortune 500 company and the world's largest diversified miner, plans to undertake bauxite and alumina mining projects in India.

It has entered into dialogue with the government for permission to undertake mining activities in Orissa.

BHP Billiton chief executive, Chip Goodyear, was quoted as saying, "Interesting deposits was located in... Orissa."

The mining major has also said that the eastern part of India was identified by the group as being as a globally important mineral province for BHP Billiton.

Its company spokesperson said, "We have been in discussions with the government of Orissa for some time. However, these are at a very early stage and no specific project can be announced."

Sources close to the development said that the company was also looking into the possibility of entering India through a joint venture with an Indian partner. BHP is yet to initiate talks with any Indian company for a possible joint venture.

They also said the Indian business model was likely to be in similar lines with BHP's smelter operations at Mozal in Mozambique which was also a joint venture. Goodyear said the problem of accessing "hard to get at" deposits, like those at Orissa, was going to become more of a issue for mining companies.

"We believe that future top tier assets are more likely than not to be discovered in more challenging parts of the world," Goodyear had said while addressing a Business Ethics model in Melbourne recently.

However, he had said the challenges of designing, developing and operating assets with world class characteristics in one of the poorest areas of the world was enormous.

Before its merger with BHP, Billiton plc had been working on launching a bauxite mine in Orissa, which is yet to proceed.

BHP Billiton is one of the world's largest diversified resources companies with a market capitalisation of $31 billion.

This diversified global group came into existence on June 29, 2001, following shareholder and government approval of the dual listed companies merger between BHP Ltd, a global natural resources company with a diversified commodity suite that includes minerals, oil, gas and steel, and Billiton Plc, one of the world's premier mining companies, with a portfolio of best-in-class mining and metals operations.

BHP Billiton operates in over 90 countries with a presence in every key mining geographical area and several of the world's premier oil and gas basins.

"The opportunity in India is enormous, and investment from socially responsible companies has the potential to improve the standard of living, provide better health and education and create new spin-off industries," Goodyear had expressed while addressing the seminar.