Nalco to cut metal output by 25% following coal shortage

National Aluminium Company (Nalco) has decided to curb aluminium output to the extent of 25 per cent at its Angul smelter due to drop in power production arising out of coal supply problems following an accident at the linked coal mine of the company.

"We are shutting down the aluminium smelting pots in a gradual manner. The total metal output, which was 1,100 tonne per day, will come down to 850 tonne per day after closure of about 200 pots," said an official of Nalco.

The company was running 823 pots out of its total 960 pots and the number is likely to come down to 623.

Meanwhile, the power generation at the company's captive power plant (CPP) has come down by 200 Mw to 600 Mw. The coal crunch started recently following closure of Bharatpur coal mines of Mahanadi Coalfields Ltd (MCL) as per the direction of the Central Mines Safety department after a worker's death.

Nalco received maximum share of 10,000 tonne coal daily from this mine through conveyor belts. Though Nalco has been drawing coal from other mines of MCL as well, its stocks have reduced to record low of 100,000 tonne, much lower than stipulated requirement of 200,000 tonne.

"The coal stock is sufficient to run the CPP for just five days," said the Nalco official.

The company blamed the coal miner for providing lesser than agreed amount of coal.

"We have been receiving 8,000-9,000 tonne coal per day since start of 2013-14 against the agreed quantity of 14,000 tonne. There has been a shortfall of 66,000 tonne since April 1, which has made it impossible to build up enough stock to run all the seven unit of CPP," the source said.

Meanwhile, Nalco authorities have been assured by MCL officials about stepping up coal supply by arranging coal from other mines through rail transport and also from its different stockyards by trucks.

However, they could not give a definite timeline to revive output.