Vedanta May Get to Mine Bauxite in Indian State-Paper

NEW DELHI, June 29 -- London-listed mining company Vedanta Resources Plc (VED.L: Quote) could get an environmental clearance to mine bauxite in the eastern state of Orissa, The Economic Times newspaper reported on Tuesday citing an unnamed government official. The Prime Minister's office has written to the environment ministry to clear the project after "a thorough scrutiny and due consideration of all aspects," the report quoted a top government official as saying. The environment ministry is likely to take a final call on the project within three weeks, the paper reported.

Vedanta's plan to mine bauxite for its alumina refinery in Orissa had been bogged down since 2005, opposed by tribes people who fear losing their homes and livelihood.

India's Supreme Court approved the project in August 2008 after years of legal wrangling and the firm had since been waiting for an environmental clearance.