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

FRESH RULES

A man speaks on his mobile phone in front of the Reserve Bank of India (RBI) seal at the RBI headquarters in Mumbai July 30, 2013. REUTERS/Vivek Prakash/Files

RBI says all companies must apply 2-step payments for credit cards

The Reserve Bank of India said that all transactions involving domestic credit cards must follow rules requiring additional verification, a stance that could impact companies such as Uber Technologies Inc that provide more simple app-based purchases.  Full Article 

REUTERS SHOWCASE

Record Highs

Record Highs

Nifty touches record high; software stocks gain.  Full Article 

New Adviser

New Adviser

Arvind Subramanian likely to be chief econ adviser.  Full Article 

Pricing Mechanism

Pricing Mechanism

Govt sets up a four-member panel to re-examine gas pricing.  Full Article 

Royalty Rates

Royalty Rates

India to hike iron ore royalty, miners may struggle to pass on extra cost.  Full Article 

Diesel Deregulation

Diesel Deregulation

Oil ministry to seek Cabinet nod on diesel deregulation - sources  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

Reuters Exclusive

Reuters Exclusive

Apple iPhone 6 screen snag leaves supply chain scrambling   Full Article 

Helping Regional Mills

Helping Regional Mills

Govt raises sugar import duty to 25 pct from 15 pct.  Full Article 

Curbing Risks

Curbing Risks

RBI to lower ceiling on bank loans to a single corporate group.  Full Article 

Reuters India Mobile

Reuters India Mobile

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