New Delhi, Oct. 1 -- In a setback to Vedanta Ltd, the Orissa High Court on Thursday dismissed the conglomerate's plea seeking enforcement of a 2004 agreement with the Odisha Mining Corp (OMC) for supply of 150 million tonnes of bauxite at prices linked to production costs and royalty.

The ruling could sharply raise the cost of bauxite for Vedanta's aluminium business, putting pressure on a key cost advantage for one of India's largest producers of the metal.

The division bench of the court held that Vedanta could not rely on agreements that had been terminated and had become unworkable following changes in mining law. The petition was filed by undivided Vedanta Ltd. in 2023.

The ruling is significant as bauxite is the key raw material ...