With plans to raise alumina production at its lanjigarh refinery in Kalahandi district by 50 per cent, bauxite-starved Vedanta on Monday sought quick steps for raw material supply from within the State.
“We plan to enhance production in lanjigarh refinery from 1 million tonne per annum (MTPA) to 1.5 MTPA, a 50 per cent increase. It will help in raising overall aluminium output,” said Chief Executive Officer (Aluminium) of Vedanta limited Abhijit Pati.
Stating that the target is to raise aluminium production jointly by the company’s smelters at Jharsuguda in Odisha and Korba in Chhattisgarh to 1.5 MTPA, Pati said Jharsuguda would produce around 1 MT, while the rest would be contributed by Korba.
Around three million tonnes of alumina would be required in order to produce 1.5 MT of aluminium, he said, adding that the company’s move to increase production would enable lanjigarh refinery to produce 1.5MT alumina.
Regarding the rest, Pati said the balance requirement would have to be met through imports.
Though the refinery at lanjigarh is already armed with the approval to run at 4 MTPA, non-availability of bauxite within Odisha has been a major hurdle since the inception of the plant, he said.
In the absence of raw material supply within Odisha, Vedanta has been importing around 40 per cent of its bauxite requirement for lanjigarh refinery, while the rest comes from domestic sources in States like Andhra Pradesh, Chhattisgarh and Gujarat, Pati said.
Stating that the company is adopting a three- pronged approach to deal with sliding global aluminium prices and bauxite crunch, Pati said a significant focus was on cost reduction, effort to optimise use of alumina and also capacity ramping up of aluminium smelters.
Pati also expressed hope that the State-run Odisha Mining Corporation (OMC) would speed up the process for ensuring long-term supply of bauxite from two mines earmarked by the State Government for the purpose.
If Vedanta plants are able to run at full capacity, it would facilitate the proposed downstream aluminium park at Jharsuguda, which can attract investment of at least Rs1,000 crore and provide direct and indirect employment to around 17,000 people, he said.