Saturday, June 22, 2013

Imports to revive Vedanta's Lanjigarh refinery

Business Standard, June 19, 2013
Jayajit Dash

After exhausting its options to source bauxite from the domestic market,  Ltd (VAL) is mulling importing the raw material to resume operations at its .

The one-million alumina refinery has remained shut since December 5, 2012, on bauxite crunch and VAL has been making frantic efforts to restart the plant. The company recently announced it would resume operations of the refinery by the end of this month.

"We are looking at the possibility of importing bauxite as it will enable us to restart operations of the refinery quickly. VAL is exploring the possibility of  from countries like Indonesia, Tanzania, and Australia. We hope to work out a deal in the next four-five days," said a senior company official.

Although imported bauxite will be costlier for VAL, the firm is considering the option for the time being amid a hostile regulatory environment that has led to the suspension of many bauxite mines and also a lack of firm commitment from private miners on supplies.

No comments: