#Vedanta to restart Odisha refinery from Monday #badnews


 
Plant was shut since last week on bauxite unavailability
Jayajit Dash / Bhubaneswar Oct 20, 2012, 18:33 IST

 
A week after going for a temporary shutdown of its alumina refinery at Lanjigarh (Odisha), Vedanta Aluminium Ltd (VAL) is gearing up to restart the plant from Monday, buoyed by bauxite supplies to the tune of around 40,000 tonne from Bharat Aluminum Company’s (Balco) Kawardah mines in Chhattisgarh.

As bauxite availability dried up, VAL was forced to shut down the refinery last Saturday.

 

“Nearly 40,000 tonne of bauxite have reached our refinery premises. We have sourced the raw material from Balco’s Kawardah mines. The bauxite stock will be enough to run our plant for 5-6 days if we operate it at 60-70% capacity, which represents the minimum threshold value of the plant”, a company source told Business Standard.
Balco has two captive bauxite mines in Chhattisgarh- Kawardah and Mainpat, with a combined production capacity of 1.9 million tonne per annum. The Mainpat mine is currently closed.

VAL needed 10,000 tonne of bauxite every day to run the plant at full capacity.

VAL will first start its captive co-generating plant (CPP) to generate steam, necessary for running the refinery. It may be noted that along with shut down of the refinery, VAL had also closed its CPP last Saturday as there was no consumption of steam.

Meanwhile, VAL is eyeing bauxite supplies from Gujarat Mineral Development Corporation (GMDC) after bagging the contract from the state PSU.

“The first bauxite shipment has been loaded by GMDC. We hope to get it within a few days. In all, we will get 90,000 tonne of bauxite from GMDC”, said the source.

The company is also in talks with private firms of Gujarat and Maharashtra that are currently engaged in bauxite exports.

VAL had approached both Federation of Indian Mineral Industries (Fimi) and Federation of Indian Chambers of Commerce & Industry (Ficci), seeking ban on bauxite exports. While VAL was struggling to keep its refinery operations afloat for want of bauxite, the raw material continued to be exported by private miners in Gujarat and Maharashtra due to better price realisations.

VAL has not been alloted any mining lease in Odisha and fully depends on externally sourced bauxite to run its refinery. It had entered into a pact with state controlled miner Odisha Mining Corporation (OMC) for supply of bauxite from Niyamgiri hills.

However, attempts to mine bauxite at the ecologically sensitive hills were red flagged by the Union environment ministry that had scrapped the Stage-II forest clearance on August 24, 2010.

Around 6,500 people, including 550 employed directly, 5,000 engaged indirectly and 1,000 self-employed in and around the plant depended on VAL refinery for their livelihood. The company claimed to have spent Rs 150 crore on the development of the local area and community.

 

Vedanta shuts down Odisha refinery ahead of schedule #goodnews


 

By IANS – BHUBANESWAR

13th October 2012 08:43 PM

Vedanta Aluminium Limited (VAL) Saturday temporarily shut down its refinery in Odisha, ahead of its Dec 5 scheduled closure, as it could not arrange for the minimum quantity of bauxite required to continue operations, a senior company official said.

“There was no other choice but to shutdown the plant because we could not arrange the required bauxite,” VAL president Mukesh Kumar told IANS. The plant will resume operations only when we arrange bauxite stocks for 10-15 days of operations, he said.

Last month, the company had informed the state government about shutting operations by Dec 5 but due to non-availability of bauxite it was forced to do so ahead of the schedule.

The one-million-tonne per annum alumina capacity refinery at Lanjigarh in Kalahandi district, about 500 km from here, had been operating at reduced capacity since its commissioning in Aug 2007.

In recent weeks the operation at the plant had reached to a critical level and in the past three days it was operating at about 25-30 percent capacity, Kumar said.

Kumar said although the company had been running the plant despite incurring heavy losses by sourcing bauxite from different states, the bauxite availability for the plant was nil since past few days.

Set up with an investment of $800 million, VAL requires three lakh tonnes of bauxite per month to run the refinery at full capacity.

Vedanta wants to mine bauxite from Niyamgiri Hills located near its refinery but its clearances are mired in litigations and protests by residents.

It has also applied for several other bauxite reserves in the state, but none of them have been materialised so far. VAL is an associate company of the London listed Vedanta Resources.

Odisha CM assures steps to prevent closure of #Vedanta’s Lanjigarh refinery #goodnews


 

Shishir Sinha, The Hindu

New Delhi, Sept. 29:

Odisha Chief Minister Naveen Patnaik has promised to initiate efforts to avert the closure of the Lanjigarh plant of Vedanta Aluminium. The company has said it would shut down the plant from December 5 citing the lack of assured supplies of bauxite.

 

This promise was given to a 30-member delegation comprising representatives of the employees and the local community when they met Chief Minister Naveen Patnaik in Bhubaneswar on Saturday. They appealed to him to save the Vedanta alumina refinery at Lanjigarh.

The delegation submitted a memorandum and appealed for regular supplies of bauxite from Odisha to the alumina refinery at Lanjigarh so that the company doesn’t close it down.

 

The Chief Minister told the delegation, “I will follow it up and take the matter forward in consultation with the Chief Secretary. All necessary steps will be taken.”

A day earlier, the delegation had submitted a memorandum to the Chief Secretary, the Minister of Mines, and the Minister of Labour and Employment. The Chief Secretary assured them that he would take steps to sort out the issue in the interest of the people.

 

The local community said the company had already sent a temporary closure notice to the Odisha Government due to a lack of raw material (bauxite) and at this juncture, if a regular supply of bauxite was not be maintained, thousands of people would be impacted. “In spite of having large quantities of bauxite in the State, if Vedanta Alumina Refinery closes down, Kalahandi will again become poverty-affected,” the memorandum said.

 

“I am from Lanjigarh of Kalahandi and I know that if the company closes down, it would affect the lives of more than 20,000 people. We want the Government to take immediate measures for the supply of bauxite to the company so that we and our region prospers,” Srikant Bohidar of Lanjigarh said.

 

Earlier this month, the company served a formal notice to the Odisha Government through the Labour Commissioner. The company had said, “The unit has already incurred financial losses to the tune of more than Rs 2,500 crore. Further operation of the refinery is not feasible unless supply of Odisha bauxite to the refinery is assured.”

 

The company’s refinery, located in the backward district of Kalahandi, has a capacity of 1 million tonnes. It has invested over Rs 8,000 crore, out of total investments of Rs 50,000 crore in Odisha. The refinery feeds alumina to its smelters located in Jharsuguda and Korba

 

Shishir.Sinha@thehindu.co.in

 

#Vedanta to close Lanjigarh refinery on Dec 5 #goodnews


 

Times of India, Sept 7, 2012
Rajaram Satapathy
BHUBANESWAR: With no bauxite in hand and mines stuck under regulatory issues, the Vedanta Aluminium Ltd (VAL) has decided to shut down its refinery at Lanjigarh in Kalahandi district. VAL president and Lanjigarh plant’s chief operating officer (COO) Dr Mukesh Kumar on Thursday intimated the state government that the factory was no more in a position to run and would be closed from December 5.
VAL’s decision is bound to send a wrong signal amongst the prospective investors that mineral-rich Odisha, contrary to the claims of the state government, is far from welcoming industries. The VAL staff carried Kumar’s letter addressed to the labour and employment secretary and handed over in the respective department. Copies of the letter were also given to the chief secretary, industry secretary and director of factories and boilers. “Such a big investment in the state is in jeopardy. No one in the government seems bothered. Our people wanted to meet the secretaries, but were told that they had no time,” said a senior VAL official.
Anil Agarwal‘s VAL is the only private industrial house to have invested more than Rs 50,000 crore in Odisha for setting up the integrated alumina, aluminium complex. This included 1mtpa refinery at Lanjigarh due for expansion to 6 mtpa capacity 70 per cent work on which has already been completed, 1.75 mtpa capacity aluminium smelter, 1215 mw captive power plant and 2400 mw independent power plant, all at Jharsuguda. “In retrospect we feel it was a bad decision to go for such huge investments here,” remarked a senior VAL official. Kumar’s letter blamed the state government for not doing enough to provide raw material, bauxite, for the refinery leading to its closure.
“VAL had set up the refinery entailing huge investment in a specific background wherein the government of Odisha had agreed to supply bauxite,” the letter said, adding detail studies were undertaken on various aspects before signing the final MoU on 7th April 2003 for setting up the refinery. “It is only on the basis of the MoUs and agreements with the government of Odisha for supply of bauxite that VAL agreed to set up an alumina refinery at Lanjigarh,” the letter said. Elaborating, the VAL said it had in the past several years has submitted 26 applications to the state government for prospective license/mining lease of bauxite. “Unfortunately none of the applications could be processed and forwarded for allotment of bauxite mines,” the company’s letter stated.
Kumar’s letter highlighted how VAL finding the government not keeping its promise for supply of bauxite had desperately tried to source raw materials from different other places including going for imports at high costs. But nothing seemed helping the plant providing livelihood to hundreds of families run smoothly. “As such, it has become difficult to sustain operations without causing damage to the plant, equipment and machinery. The unit has already incurred financial losses to the tune of more than Rs 2500 crores,” the letter said adding that Lanjigarh factory was built exclusively with ‘low pressure and low temperature technology to treat bauxite available only in the Eastern Ghats and mostly in Odisha.’ The VAL said the prevailing situation has left it with no choice but to take such a ‘painful’ decision to close down the factory as ‘further operation is not feasible’.

 

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