Nalco logs 18% growth in bauxite output in 2016

This is the highest growth for Nalco since inception and also a record in the mining industry

Central PSU National Aluminium Company (Nalco) has recorded a growth of 18 per cent in 2016 in its bauxite output. The growth in bauxite production is Nalco’s highest since inception and also a record in the mining industry, the company’s chairman and managing director (CMD) T K Chand said.
 

“During the financial year 2016-17, Nalco will surpass its production capacity of 6.82 million tonne (mt) and will achieve 7.32 mt production,” Chand said on the occasion of Nalco's Foundation Day.
 

In the stock market, Nalco’s share price has registered an increase of 68 per cent from Rs 40.20 to Rs 67.60. 
 

Nalco signed an MoU (Memorandum of Understanding) with the city-based Utkal University to collaborate on some specific areas - R&D (Research & Development) projects, baseline and impact assessment survey for CSR projects and industry institution interaction where the university will be one of the key institutions, extend internship and vocational training to students of the university and extend its support in skill development training programmes for underprivileged people of Odisha.
 

Nalco has been one of the major investors in Odisha. Of late, it has planned to set up a new greenfield smelter at Kamakhyanagar. The site chosen for the new smelter is close to Gajamara in Dhenkanal district where Nalco is teaming up with power utility NTPC (Nalco Power Company Ltd) for setting up a 2400 Mw coal-fired power station. This power project estimated to cost Rs 14,000 crore, will be implemented by a joint venture company titled NTPC.
 

The proposed smelter’s capacity is pegged at 0.6 million tonne per annum. Power generated from the planned super thermal power station will feed this greenfield smelter.

The new smelter is expected to go on stream in nearly four years. This state-of-the-art smelter will make use of the latest in aluminium smelting technology.

Nalco is also going for brownfield expansion of its existing smelter project at Angul whose nameplate capacity is 0.46 mtpa. The navratna company has a Capex (capital expenditure) of Rs 10,000 crore to add 0.5 mtpa capacity to this smelter. Land and associated infrastructure needed for this smelter expansion is in place. With the expansion, Nalco hopes to prune cost of production and achieve economy of scale. The company will also deploy the latest technology to ensure reduced energy consumption and high productivity.