Vedanta’s Lanjigarh Alumina Refinery Receives First Bauxite Shipment From Kodingamali

Vedanta’s Lanjigarh Alumina Refinery Receives First Bauxite Shipment From Kodingamali

Indian aluminium producer Vedanta Ltd. has received the long-awaited stream of bauxite ore from Odisha Mining Corporation (OMC), paving the way for its plans to complete its expansion of its alumina refinery at Lanjigarh.

According to domestic media, Vedanta received the maiden bauxite shipment from OMC earlier this week. Vedanta Limited’s External affairs (Head) Sanjeev Kumar informed the media that the bauxite ore delivered to Lanjigarh originated at OMC’s operations 95 miles away at Kodingamali.

To date, Vedanta has been forced to import the lion’s share of its bauxite from abroad or from distant locations domestically.

This new source of bauxite comes just as Vedanta works to expand the refinery’s capacity. Though holding authorization to produce up to 2 million metric tons of alumina per annum, its tepid supply of bauxite has limited it to only 1.2 million metric tons per annum.

“Though OMC at present meets only five per cent of our bauxite requirement, we look forward to get more raw material by taking part in auctions of other mines in Odisha,” explained Kumar.

He continued by saying that Vedanta hopes to obtain 3 million metric tons per annum of bauxite from OMC by year’s end, which is approximately half of what it will require to run at current capacity. However, once the facility is expanded to a capacity of 4 million metric tons per annum, Kumar says that it will require a total of 12 million metric tons of bauxite ore each year to fill its requirements.

When asked if Vedanta is looking to Niyamgiri for further bauxite, Kumar dismissed the idea.

“We are not looking for Niyamgiri now,” he said. “It is insignificant for us. However, the company will like to participate in any auction within Odisha.”

Going forward, Vedanta will continue to utilize its unique competitive edge against its rivals, Kumar explained.

“Relatively our efficiency is very high for which we continue to survive despite buying bauxite at high price. Our finished goods are much better than the others due to technology we adopt.”