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Industry Info

Vedanta to ramp up alumina production to full capacity from Dec

The firm operates one-mtpa greenfield alumina refinery and an associated 75 Mw captive power plant at Lanjigarh in Odisha

Vedanta Aluminium Ltd (VAL) today said its one-mtpa (million tonnes per annum) refinery plant at Lanjigarh in Odisha would run on full capacity from coming December onwards.

The capacity utilisation in the refinery is currently about 65-70 per cent. "We are trying to get additional bauxite for this from different sources. From December onwards, the production would reach one mtpa level," S K Roongta, managing director of the company said here, on the sideline of a seminar organised by MCC Chamber of Commerce.

"This increase in refinery production would be done even with costly imports.Currently, our bauxite sourcing is one third each from Balco, other domestic sources and import. All will proportionately go up to reach the full capacity level," he added.

The firm operates a one-mtpa greenfield alumina refinery and an associated 75 Mw captive power plant at Lanjigarh in Odisha.

The plant was even closed for six-seven months from December 5, 2012 due to lack of baxuite, the key raw material for alumina making.

Because of opposition from locals, its proposed baxuite sourcing is yet to commence from Niamgiri mines, on which the company was banking on heavily to source bauxite.

The company has also has 0.5 mtpa aluminium smelter at Jharsuguda in Odisha. Construction of 1.1 mtpa aluminium smelter expansion project in underway there. But, here too the plant is having issues to source alumina.  

"We have proposed to Nalco to sell surplus alumina to us, which they are exporting now. Nalco could earn $ 60 -70 more per tonne of alumina by supplying to us. It will be win-win for both of us," Roongta noted.

Reportedly, Nalco is opposed to the idea as it was against saying it was against the PSU firm's policy to supply in domestic market. "We have made the proposal. There has been no understanding yet. But, hopefully they will agree to this proposal," he added.

Source: Business Standard