 "Vedanta revives second stream operations at Lanjigarh refinery")
Vedanta had idled this stream of the refinery as local bauxite sources had dried up. But, as the company looks to expand aluminium output, it has gone for a commensurate ramp up in alumina production.
Alumina production by Vedanta went up two per cent in the April-June quarter to 0.27 million tonne (mnt). The company has targeted an alumina production of 1.4 mnt. It has approvals to operate the alumina refinery at 1.4 mnt and will consider ramp up to that level on further visibility of bauxite sources. Presently, Vedanta is meeting its entire bauxite requirement on externally sourced material. While 70 per cent of the bauxite is sourced from states like Gujarat, Chhattisgarh and Andhra Pradesh, the rest 30 per cent is imported from countries like New Guinea.
Pursuing its plans to expand aluminium production, Vedanta has completed the ramp up of the first potline of the second smelter at Jharsuguda. The second smelter lying within the SEZ (Special Economic Zone) was lying largely idle on account of power unavailability.
However, Vedanta has got a favourable order from the state power regulator — Odisha Electricity Regulatory Commission (OERC) to use up to 1,800 Mw power from its 2,400 Mw coal-fired station in the vicinity of its smelter, from April 1 this year. Vedanta has also initiated work on the second production line of this SEZ smelter which has a nameplate capacity of 1.25 mnt per annum. The ramp up of its Balco smelter at Korba is nearing completion.
Vedanta's average cost of aluminium production was $1,476 a tonne in the April-June quarter, significantly lower than $1,689 per tonne in the comparable period of last financial year.
"The decrease was primarily due to lower alumina and coal prices, rupee depreciation, and the implementation of various cost saving initiatives which were partially offset by regulatory headwinds of clean energy cess and electricity duty", said Vedanta's production in a statement.
However, the cost has increased compared to $1,431 per tonne in the last quarter of 2015-16 due to one-off power purchases from the grid during a power outage at our power plants, increased clean energy cess and electricity duty. This was partially offset by continued cost saving initiatives. Vedanta hopes to contain its hot metal cost within $1,400 per tonne in the rest of the financial year.
