The Hindu
Anrak in talks with Glencore to source bauxite ore
Edited by : AL CIRCLE
2 min read
Anrak Aluminium Limited (AAL) which is in trouble due to moratorium imposed on clearances for bauxite mining in scheduled areas of Visakhapatnam, is reportedly planning to source bauxite ore through Glencore – world's leading commodity trader.
AAL, floated by Penna Group and Ras Al Khaimah Investment Authority on a 70:30 ratio following a memorandum of understanding with Andhra Pradesh Government on February 14, 2007, is in advanced stage of completing construction of 1.5 million tonne per annum capacity alumina refinery at Rachapalle in Makavarapalem mandal, about 100 km from here.
To operate the refinery, at least till the lifting of the moratorium on bauxite mining, it is expected to bring the ore through Glencore if it strikes a deal with it. There were reports that it is also making efforts to procure bauxite ore from Jharkhand, Chattisgarh and Odisha.
AAL's total investment of Rs.14,000 crore includes establishing the alumina refinery, 2,50,000 tonne per annum smelter plant and 90 MW captive power plant. The project has already received Special Economic Zone status. As per the MoU AP Mineral Development Corporation is supposed to supply 4.5 million tonne per annum from Jerella mine plateau.
As per Anrak website, the AP Government granted mining lease to APMDC in an area of 1162 acres in Jerella Group of Bauxite Deposits for 30 years in November, 2007 – almost nine months after signing the MoU. The block has 240 million tonnes of deposits.
“Achieving a breakeven by procuring the bauxite ore from Glencore or some other firm will not be viable. AAL is also aware of it. It is confident of exerting pressure on the Central Government to remove the obstacles to allow APMDC to dig the bauxite ore from the agency areas on a fast-track mode,” Rebbapragda Ravi, executive director of Samata, told The Hindu.
AAL also boasts of getting permission to draw five million gallons per day from Yeleru Left Main Canal. “Drawing water in such a huge quantity will be a setback to farmers and residents of Vizag. Better let them go for desalination plant. We also have information that without change in land use, they have filled several tanks at the project site,” he said.
AAL, floated by Penna Group and Ras Al Khaimah Investment Authority on a 70:30 ratio following a memorandum of understanding with Andhra Pradesh Government on February 14, 2007, is in advanced stage of completing construction of 1.5 million tonne per annum capacity alumina refinery at Rachapalle in Makavarapalem mandal, about 100 km from here.
To operate the refinery, at least till the lifting of the moratorium on bauxite mining, it is expected to bring the ore through Glencore if it strikes a deal with it. There were reports that it is also making efforts to procure bauxite ore from Jharkhand, Chattisgarh and Odisha.
AAL's total investment of Rs.14,000 crore includes establishing the alumina refinery, 2,50,000 tonne per annum smelter plant and 90 MW captive power plant. The project has already received Special Economic Zone status. As per the MoU AP Mineral Development Corporation is supposed to supply 4.5 million tonne per annum from Jerella mine plateau.
As per Anrak website, the AP Government granted mining lease to APMDC in an area of 1162 acres in Jerella Group of Bauxite Deposits for 30 years in November, 2007 – almost nine months after signing the MoU. The block has 240 million tonnes of deposits.
“Achieving a breakeven by procuring the bauxite ore from Glencore or some other firm will not be viable. AAL is also aware of it. It is confident of exerting pressure on the Central Government to remove the obstacles to allow APMDC to dig the bauxite ore from the agency areas on a fast-track mode,” Rebbapragda Ravi, executive director of Samata, told The Hindu.
AAL also boasts of getting permission to draw five million gallons per day from Yeleru Left Main Canal. “Drawing water in such a huge quantity will be a setback to farmers and residents of Vizag. Better let them go for desalination plant. We also have information that without change in land use, they have filled several tanks at the project site,” he said.
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