AnRak Aluminium in Visakhapatnam, Andhra Pradesh: Another Vedanta in the making ? – An article in EPW

This paper in Economic and Political Weekly (EPW) by Patrik Oskarsson deals with the bauxite (aluminium) project which is very similar to the Vedanta project in Odisha and is coming up in Visakhapatnam district of Andhra Pradesh.

AnRak Aluminium, a company of the government of Rasal-Khaimah of the United Arab Emirates and Penna Cement of AP has secured approval for both an aluminium complex and the bauxite mines, but the final forest clearance for the mines is awaited.

The AnRak project has replicated the Vedanta model of first building the refinery and then setting up the mine. The mine is to be operated by the state government to circumvent the ban on non-tribal landownership.

In fact, the state government has disregarded the huge environmental and social impact and popular protests against mining bauxite in the Jerrela Hills, inhabited almost exclusively by adivasi tribes who will be displaced, to safeguard private gain.

At present, AAL is pursuing its alumina project with scant, if indeed any, public benefit while concealing adivasi groups in the proposed mining area from official plans. Instead of moving towards increased transparency for contentious mineral development, the AAL project has moved towards further camouflaging intentions and preventing deliberations. The actual investors were unknown for a long time.

Once it became clear that Penna Cement was in fact the largest shareholder, questions were naturally raised both about the company’s lack of relevant experience in the industry as well as its close political connections. RAK is also without previous experience in aluminium and seems to disproportionately invest in AP, again raising questions about the influence of AP Congress politicians.

And Andhra Pradesh Mineral Development Corporation (APMDC) appears mainly as a front for private miners (who are banned in the AP scheduled areas) given that it has no experience of bauxite mining, no manpower, and no equipment to get the work done. While this article has described the close support AAL has received from leading state-level politicians, sections of the central government have expressed concern about the consequences of mining. Union Tribal Welfare Minister and Visakhapatnam MP Kishore Chandra Deo opposes the project and has asked the AP governor to cancel the mining leases. Similarly, Union Rural Development Minister Jairam Ramesh has voiced concern (Sehgal 2012; Deccan Chronicle 2012).

The CPI and CPI(M) along with many non-governmental organizations (NGOs) and other groups are also protesting against the unpopular bauxite mining part of the project. In the meanwhile, landowners at the AAL site in Makavarapalem have received some cash for their land but will have to continue to live Vedanta-style right next to a polluting alumina complex without any meaningful way of making a living.

The project is now moving ahead despite significant political as well as local opposition, particularly in relation to the mines. That the company is willing to spend thousands of crores on an uncertain project is quite surprising. Is it that strong political support makes the company certain that mining will eventually start? At this juncture, when the state is in a political crisis due to internal political party feuds, corruption accusations, and the Telangana struggle for statehood, it is not clear how anybody can be certain what will happen. Even if the refinery starts operations without guaranteed ore supplies from nearby, it will be a loss-making affair just like the Vedanta Lanjigarh refinery.

The Dongria Kondh are the invisible adivasis of the Jerrela Hills, but their numbers are not known. The moot question is how do they make a living at present and what will they do in the future if this mining project goes ahead. Official plans do not answer these important questions in a meaningful way. If the project continues, we will never know since these peoples will simply have to get up and leave.