Nalco eyes profitability from aluminium operations by FY19 end

Firm says once coal mining from two key blocks starts, power cost will fall, profits will improve

National Aluminium Company (Nalco) hopes to turn in profit from its aluminium business towards the end of 2018-19 after the commencement of coal mining from its captive Utkal D coal block.

"With the commencement of coal production from Utkal-D and Utkal-E blocks, the power cost will plunge which will make the aluminium business more profitable. We are hopeful that the production from Utkal-D block will start in two years", T K Chand, chairman cum managing director of Nalco told Business Standard.

Power cost accounts for 40 per cent of aluminium production. Despite being the lowest cost producer of alumina in the world,