Adani's Mundra Aluminium Ltd is declared as a preferred bidder for the Kutrumali bauxite block, Odisha

Mundra Aluminium Ltd, a wholly-owned subsidiary of Adani Enterprises incorporated in December 2021, is selected as the preferred bidder for the Kutrumali bauxite block by the Odisha government.

The news came after the company received a letter of intent dated February 27, 2023, from the Odisha government regarding the mineral block in Odisha.

Adani Enterprises said in an exchange filing, "We are pleased to inform that based on the outcome of the auction proceedings, Mundra Aluminium has been declared the "preferred bidder" and subsequently, a Letter of Intent dated February 27 has been issued by the Government of Odisha in respect of the following mineral block in Odisha."

Following the news, shares of Adani Enterprises, the flagship company of Adani Group, soared 12 per cent to INR 1,532.85 on the BSE in Wednesday's intra-day trade.

The Kutrumali bauxite block, located in Odisha's Kalahandi and Rayagada districts, has geological reserves of 128 million tonnes.

In August 2022, Adani Enterprises said the Adani Group would invest INR 57,575 crore in Odisha to set up two projects - a 4 MMTPA Integrated Alumina Refinery and a 30 MMTPA Iron Ore (Value Addition) Project. The former, to be set in the vicinity of potential bauxite reserves or operational mines, will produce smelter-grade alumina, which will help India reduce its reliance on imports.