According to India’s apex industry body, the Federation of Indian Mineral Industries (FIMI), the drastic coal crisis in India has developed a situation like “swimming in a rough ocean” for the aluminium producers as the reserve of the fossil fuel sink to a scathing level.
B.K. Bhatia, Additional Secretary General, FIMI said: “Most aluminium factories, which have their power generation plants, have stockpiles for only one to two days. While aluminium output hasn’t been affected so far, there may be production cuts by the end of the month if coal supplies don’t recover.”
The Aluminium Association of India stated that the stiffening supplies of coal have tripped a power emergency in India as around 70% of the country’s electricity is fossil-fuel-fired. A load-shedding for more than two hours at aluminium smelters can spawn the molten metal in the potline to become rock-hard, compelling the smelting unit to close down for a minimum of six months.
FIMI has documented to the nation’s Ministry of Coal requesting prompt re-imposition of coal supplies as aluminium and steel plants have atrociously rock-bottom critical coal stockpiles. However, the power plants are being enforced to diminish power generation and defy a perilous shutdown.
The letter further said: “The low supplies have brought down the industry to almost standstill and left with no time to devise any mitigation plan to continue sustainable operations.”
The Indian aluminium companies comprising the three major aluminium producers, Vedanta Ltd., Hindalco Industries Ltd. and state-run National Aluminium Co., have a combined annual production capacity of around 4 million tonnes of primary aluminium.
“Imports of coal, which makes for about 35% of the cost of producing the metal, are not a viable option to meet the shortfall as international prices have gone up exponentially and ocean freight is also at an all-time high”, the letter added.
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