Nalco seeks sites for 3rd phase expansion

The National Aluminium Company (Nalco) is scouting for new sites in Orissa for the third phase of its expansion. The company is in talks with the Orissa government for acquiring new bauxite mines.

Sources close to the development said, "Since there is limited scope for expansion at the existing site in Angul, Nalco is looking for new bauxite deposits in the neighbouring region." The company has identified a couple of sites in Gandhamardhan, sources said.

Meanwhile, Nalco's second phase of expansion, which entails an investment of Rs 4,100 crore, is expected to go on stream from this July after it receives the approval from the Cabinet Committee of Economic Affairs.

The project, which was awaiting a clearance from the Public Investment Board (PIB), received a go-ahead last month after over three years.

The expansion project includes increasing the aluminium smelting capacity to 4.6 lakh tonne per annum from the current 3.45 lakh tonne per annum. Production of alumina will also rise to around 21 lakh tonne per annum from the existing 15.75 lakh tonne per annum.

Once the project goes on stream, it will be completed in 50 months. The project also envisages the expansion of the capacity of bauxite mines from 48 lakh tonne to 63 lakh tonne.

The company is also planning to recruit around 300 personnel at the operator's level to support its expansion projects.

Nalco also opened a stock yard in Silvassa yesterday - its fifth stockyard in the country. The company is planning to open another stockyard in Faridabad next month and is looking at setting up another 3-4 stockyards in the current financial year.

Nalco is waiting for approval from the PIB for setting up a rolled product manufacturing facility. The investment for this 50,000 tonne per annum unit is estimated around Rs 35 crore. The company is also exploring the possibility of manufacturing alloy products.

Price increase from June 1 seen

Domestic aluminium prices are likely to increase by around Rs 1,000 from June 1. While basic prices of ingots will increase to Rs 89,250 per tonne, prices of wire rods are expected to be around Rs 92,500. The global prices of aluminium have been on the rise in May, while alumina prices have softened in the last few weeks.