[SMM translator] Vedanta plans to expand production of the Lanjigarh aluminum refinery sixfold by the spring of 2020

SMM11, 13 March: India's Vedanta Co., Ltd. (Vedanta Ltd.) announced late last week that it intends to increase the alumina production capacity of the Lanjigarh smelter in India to 6 million metric tons per year from the current 1 million metric tons per year. The proposal has been approved by the (HLCA), the Odisha's top management board.

Since the total volume of alumina exports from Vedanta is about 1 million metric tons per year, the planned growth will certainly help reduce the company's production costs.

The increase in alumina is only the latest of several measures to stem fluctuations in input costs. Earlier this year, the state government also approved a proposal by Vedanta to invest 65 billion rupees in one of Dhamra's caustic soda production units.

In addition, the company continues to lobby the federal government of India to waive coal rationing, which has been one of the main determinant of input volatility. Although caustic soda prices are currently stable, coal rationing by non-regulators, including aluminium production, has led to serious fluctuations in fuel costs and availability.

Vedanta is also committed to providing stable bauxite resources, which it has no artificial bauxite resources compared with competitors Nalco and Hindalco.

The company recently announced an agreement with Odisha mining company (OMC) to buy 70 per cent of its bauxite a year.

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