 "Nalco to start work on expanding Damanjodi refinery in February 2017")
The National Aluminium Company (Nalco) aims to commence work on expansion of its alumina refinery at Damanjodi in February next year.
The aluminium major is adding a fifth stream to of one million tonne (mnt) incremental capacity to the refinery whose present nameplate capacity is 2.275 mnt a year.
“We expect to get environment clearance for the refinery expansion by December this year. Hopefully, by February next year, we would be able to start work on the planned expansion”, said Nalco’s chairman and managing director (CMD) T K Chand.
Nalco is sourcing bauxite from its captive Panchpatmalli mines in Koraput district to feed the refinery installed at the foothills. The state government has extended the validity of the mining lease till 2020 as per the provisions of the amended Mines and Minerals- Development & Regulation (MMDR) Act. The present mining capacity of Panchpatmalli mines is 6.8 mnt per annum and Nalco is targeting alumina production of 2.1 mnt this fiscal.
To cater to the expanded capacity, Nalco would draw bauxite from Pottangi mines, also in Koraput district. Nalco has recently won mining rights over Pottangi with proven deposits of 75.22 mnt of bauxite.
Nalco has firmed up an investment of Rs 5,600 crore for adding a fifth stream to the Damanjodi refinery whose current capacity stands at 2.275 million tonne per annum (mtpa). The expansion plan has already been cleared by the High Level Clearance Authority (HLCA), the highest body to approve investments in Odisha.
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Last year, the company had submitted Rs 300 crore CSR (corporate social responsibility) package to the state government for the Pottangi deposits. The CSR projects would be implemented at Damanjodi, Angul and other parts of Odisha.
Over the years, Nalco has been exporting surplus alumina of around one mnt every year. But, it has now decided to use more alumina for smelting. Nalco aims to reach the rated capacity of 0.4 mnt at its Angul smelter by 2017-18. Nalco has also decided to go for a greenfield smelter at the same location with 0.4 mnt capacity with an investment of Rs 10,000 crore. A power plant of 500 Mw would also be installed at the smelting site.
This apart, Nalco is looking at overseas foray, initiating talks with some Iranian companies for toll smelting arrangement, banking on cheap natural gas availability in that region.
The Navratna aluminium company recently entered into a memorandum of understanding (MoU) with Iranian Mines & Mining Industries Development & Renovation Organization (IMIDRO) on the sidelines of Prime Minister Narendra Modi’s visit to Iran.