Vedanta Aluminium to raise capacity to 2.5 million tonnesDecember 6th, 2011 - 8:55 pm ICT by IANS
Hyderabad, Dec 6 (IANS) Vedanta Aluminium Ltd, a subsidiary of the globally-diversified mining group Vedanta Resources PLC, will be expanding its smelting capacity to 2.5 million tonnes in less than a couple of years with an investment of Rs.60,000 crore.
At present, the smelting capacity of Vedanta Aluminium is around 1.6 million tonnes per annum.
The expanded smelters will start operating from the next financial year, and in less than couple of years the total integrated aluminium capacity of Vedanta Aluminium and BALCO, the two group companies, will go up to over 2.5 million tons.
Talking to reporters on the sidelines of the 6th International Conference on Aluminium (INCAL), which began here Tuesday, Vedanta Aluminium managing director S.K. Roongta said it was exciting for him to steer 2.5 million capacity with captive power of 6,000 MW when the current consumption of aluminium in the country is only two million tons.
Vedanta is at present operating one million tonnes refinery at Lanjigarh, half a million tonnes smelter at Jharsuguda and about 275,000 tonnes smelter at BALCO.
“We have aluminium production of about 775,000 tonnes at this moment. We are putting up another smelter at BALCO which is almost getting ready with capacity of 325,000 tonnes and four lines in new smelter plant at Jharsuguda of 1.25 million tonnes,” he said.
The total investment in expansion of smelting capacity at BALCO, allied power plant of 1,200 MW, smelter capacity at Jharsuguda, new power plant of 2,400 MW as well as expansion at Lanjigarh will be Rs.60,000 crore.
“We have already spent more than 75 percent of it. The capacity is almost ready for operation, especially smelter capacity and power plants.”
Roongta said buying bauxite from open market was adding to the cost but the company was trying to minimize the cost by efficient plant operations and reducing power consumption and use of other ingredients.
“It is not a permanent solution to buy bauxite from various sources and incur so much transportation and logistic costs. We have to have our own bauxite. We will find some solution. I am certain solutions will emerge,” he said referring to plenty of bauxite reserves in Odisha and Chhattisgarh but the ongoing problems in mining.
Roongta said once the full capacity expansion was operational, the company would require almost 15 million tonnes of bauxite every year. At present, it needs three million tonne for one million tonnes refinery.
Replying to a question, he said Vedanta would be looking at owning coal assets and participate in the auction of new coal blocks.
He said importing coal would not be economically viable either for the companies or the country.
“We are sitting right in the midst of the coal reserves, where coal can be mined at the lowest cost in the world. Government must find solution to at least hinterland plants through higher supplies from local coal mines,” he added.
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- NALCO to expand capacity at Orissa unit - Apr 25, 2011
- Activist demands shutdown of Vedanta refinery in Odisha - Sep 18, 2012
- Villagers seek allocation of bauxite for Vedanta plant - Aug 29, 2012
- Coal shortage forces NALCO to cut aluminium production - Sep 10, 2011
- Vedanta refinery cuts output on bauxite shortage - Aug 25, 2012
- Villagers stage demonstration seeking bauxite for Vedanta plant - Sep 11, 2012
- NALCO gears up for expansion,to enter metal and power sectors - Oct 01, 2010
- Vedanta hopes to get bauxite for Orissa plant soon - Jan 22, 2010
- Hindalco to invest $5 billion more, double aluminium capacity - Dec 06, 2011
- Vedanta taps Gujarat for bauxite for Orissa refinery - Sep 02, 2010
- Environment ministry stops Vedanta's refinery expansion in Orissa - Oct 22, 2010
- Nalco puts Indonesia smelter project on hold - Aug 15, 2012
- Supreme Court stays order on Sterlite plant closure - Oct 01, 2010
Tags: allied power, aluminium production, captive power, crore, group companies, half a million, incal, mining group, mw, permanent solution, plant operations, power consumption, power plant, power plants, refinery, sidelines, smelter plant, smelters, tonnes, vedanta