Vedanta Aluminum to double alumina output after mine approval

Steelguru.com,  Nov 23, 2009
Bloomberg reported that Vedanta Aluminum Limited plans to double alumina production once it gains approval to mine bauxite in Orissa. Approval for the mine will come soon.

Mr Mukesh Kumar COO of the unit of Vedanta Resources Plc said that once approval is given it will take 8 months to increase refinery output to 1.4 million tonnes.

Mr Kumar said that "We will have steady raw material supply and our costs would significantly come down once the mine becomes operational as there will be no additional freight cost."

Vedanta Aluminum plans to spend as much as INR 80 billion to raise refining capacity to 6 million tonne by 2013. Aluminum is made from alumina which is refined from bauxite.

Mr Kumar said that "We have applied for the approval of the refinery expansion and would proportionately seek to secure raw material supplies."

Vedanta Aluminum is currently producing alumina at a rate of 700,000 tonnes per year below the 1 million tonnes capacity because of delays in securing mining rights from the federal government.

(Sourced from Bloomberg)

NOTE: Since Refinery provides less job opportunity and downstream industries compared to smelter, VAL should be pursued to establish a Aluminium smelter in Kalahandi.