Vedanta Aluminium halts refinery on bauxite shortage

NEW DELHI Tue Dec 4, 2012 7:55pm IST

A bird flies by the Vedanta office building in Mumbai August 16, 2010. REUTERS/Danish Siddiqui/Files

A bird flies by the Vedanta office building in Mumbai August 16, 2010.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - India's largest aluminium maker, Vedanta Aluminium Ltd (VAL), will temporarily shut its alumina refinery in Odisha due to bauxite shortages, the president of the company, a unit of London-listed Vedanta Resources (VED.L), said.

"Despite all our efforts we could not arrange bauxite ... we are closing down the unit from December 5," Mukesh Kumar told Reuters on Tuesday.

The shutdown of the refinery is unlikely immediately to affect VAL's aluminium output, Kumar said.

The 1 million tonnes a year plant at Lanjigarh in Kalahandi district of Odisha will restart only after securing supplies of bauxite, the raw material to produce alumina, from which aluminium is made.

VAL is seeking a long-term supply arrangement, Kumar said without giving details.

The refinery, which requires 10,000 tonnes of bauxite a day to operate at full capacity, has faced bauxite shortages since it was commissioned in August 2007.

Vedanta says the plant is designed for local bauxite and only this material can ensure its sustainability.

(Reporting by Jatindra Dash; editing by Mayank Bhardwaj and Anthony Barker)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Healthcare Corruption

REUTERS SHOWCASE

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Mircosoft Results

Mircosoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Deal Talk

Deal Talk

Exclusive - Lupin, U.S. firms weigh bids for GSK's mature drugs: sources  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Classifying Banks

Classifying Banks

RBI to start announcing too-big-to-fail banks in Aug 2015  Full Article 

Food Scandal

Food Scandal

Starbucks, Burger King dragged in as China food scandal spreads.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage