Facing unprecedented crisis over acute coal shortage and low lME price (london Metal Exchange) of aluminium, public sector National Aluminium Company (Nalco) has shut down two units of its power plant and decided to shut down around 200 pots.
“We have coal stock of only five days. Mining at the dedicated Mahanadi Coalfield limited (MCl) –run Bharatpur Mine was suspended by DGMS (Director General Mining Safety) recently following the death of a contractual labourer due to landslides. So this has disrupted operation in the mine and supply of coal to Nalco. Therefore, we have shut down two units. The lME price of aluminium has lowered down to 1800 Dollar per ton. In this situation, purchasing coal in higher price will lead to huge loss to the company. Therefore, we have decided to shut down 200 pots,” said Nalco CMD Anshuman Das.
The shutdown of two units of 120 MW each out of total 12 units has resulted in scaling down of production at Nalco’s smelter plant. Another unit had been shut down earlier for maintenance activities. The power plant of the company has been able to produce only 600 MW power now. In the smelter plant, 823 pots are operated out of total 960 pots. In the present availability of coal and subsequently power, it became impossible for the plant to operate the 823 pots, said sources.
Nalco Director (production) SS Mohapatra said, “The subsequent effect of pot shut down will reduce the metal production by 10,000 MT per day. Again, if we import coal, then our power generation cost will be more. However, it is a temporary measure till the power situation stabilises. Coal supply has been fluctuating, causing a lower output at our power plant. This has forced us to close down some pots for the time being.”
Notably, a total of 120 out of 960 pots in the smelter plant were shut down last year resulting in the slashing of aluminium production to 1,050 tonnes a day from the normal production of 1,200 tonnes and led to a loss of Rs 2 crore a day. Senior Nalco officials including Executive Director PR Choudhury and GM AK Sahu discussed with the officials and workers on the present crisis. Meanwhile, Mohapatra and Director (HR) SC Padhy rushed to the Angul plant for damage control.