OST Business Bureau
Bhubaneswar, Nov 13:
Production in the Lanjigarh refinery of Vedanta Aluminium Ltd (VAL) in Kalahandi district, which resumed in July this after remaining shut down for over six months since December 5 last year due to non-supply of raw material, is expected to reach full capacity from December this year.
The refinery is currently operating much below its installed capacity of 1 million ton per annum (MTPA) due to problems in raw material supply.
In a statement at Kolkata, VAL Managing Director SK Roongta has said that the capacity utilisation of the unit which was 65 percent in October this year, would reach 100 percent from December.
With an increase in production, the bauxite requirement would go up to three million tonnes, Roongta said, adding that the company now meets its bauxite requirement from its group company Balco, buying from merchant mines of other states and imports.
The company had earlier announced that it would increase its smelter production capacity at Jharsugda to 2.3 million tonnes over the next three years.
However, due to resistance from local tribals, the proposed bauxite mining is yet to commence from Niyamgiri hills. The company had also tried to convince Nalco to supply alumina to its plant, to which the latter has not agreed so far.