According to numbers for the just-ended quarter, metals miner Vedanta refined more alumina at a lower cost than previous quarters thanks to an increased reliance on domestic bauxite sources.
In a presentation to investors earlier this week, Vedanta said it was able to trim 8 percent from the cost of refining alumina at the Lanjigarh refinery on the year, dropping the cost per metric ton of production to US$269 in the third quarter of the fiscal year.
Meanwhile, Vedanta said the volume of refining rose in Q3 at the Lanjigarh alumina refinery, rising by 16 percent on the year to a total of 476 thousand metric tons.
Vedanta said that alumina production from April through December last year the refinery’s output jumped by 24 percent on the year. Conversely, cost of production in the period fell by 16 percent on the year, ending the year at US$281 per metric ton. As alumina costs fell in the period, so too did the cost of aluminium production, dropping to US$1,691 per metric ton.
The firm is soon to ramp up production at Lanjigarh, which will be accomplished in two phases. The first phase will see production increase to 2.7 million metric tons per annum, followed by a second phase that is slated to establish a nameplate capacity of 6 million metric tons per annum.
At present, roughly half of Vedanta’s demand for bauxite ore is sourced from within India, and it expects to increase the share of coal in a similar fashion. Currently the firm buys 72 percent of its requirement from in-country sources, but participation in the Tranche V and Tranche VI coal auctions in the coming months is hoped to increase that total to 90 percent. Vedanta seeks to boost local bauxite sourcing by increasing activity at the Kodingamali bauxite mine via Odisha Mining Corporation, and it plans to seek out new bauxite ore caches under the country’s New Mineral Policy.