Bullish alumina prices to hike Vedanta's metal cost by 10%

In the April-June quarter, Vedanta's cost of alumina production was $1934 per tonne, 12 per cent higher than the corresponding quarter of last fiscal

A sharp rally in spot alumina prices along with the depreciating rupee has unnerved Vedanta. The company is worried over the escalating alumina prices on its aluminium smelting costs. Unlike peers- Hindalco Industries and National Aluminium Company (Nalco), Vedanta is not fed by captive bauxite mines and depends on imported supplies of alumina, the intermediate product and key ingredient in aluminium making.

“The rocketing alumina prices are a concern. Imports meet about 60 per cent of our alumina requirement for smelters. Stronger global prices of alumina will shoot up our import bill and is bound to have a bearing on