Declining alumina cost helps Vedanta set eyes upon higher aluminium output

<p>Global mining and metals behemoth Vedanta is eyeing 1.6 million tonnes (mt) of aluminium output for the financial year 2017-18, encouraged by the falling alumina prices and a resilient LME aluminium. The company ended the last financial year with a record production of 1.2 MT primary metal.</p> <p>Overall cost of production for the aluminium producer was down by seven per cent to US$1,463 per tonne, thanks to volume ramp-up, cost-saving initiatives, INR appreciation and of course, lower alumina cost, the company said in its annual production report.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Vedantaalumina.jpg" alt="News" width="517" height="352" /></p> <p>Vedanta has set an average aluminium CoP target of US$1,475-1,500 per tonne for the current financial year. The full capacity ramp-up of its second aluminium smelter at Balco (Bharat Aluminium Company), ramp-up of the balance pot lines at its 1.25-mt-per-year Jharsuguda smelter, securing continuous bauxite supply through a strengthened supply chain, expanding Lanjigarh alumina refinery's capacity to 4 MT per annum, and optimising other raw material sourcing costs would ideally help the company achieve the target by 31st March, 2018.</p> <p>{googleAdsense}</p> <p>Vedanta's total alumina output during FY 2016-17 reached 1.2 MT, up 24 per cent from the previous year. Alumina CoP for the entire year was recorded at US$282 per tonne, down 10.6 per cent year-on-year. The Lanjigarh alumina refinery with a nameplate capacity of 4 MT per annum alumina, now has a de-bottlenecked capacity of 1.7-2 MT per annum.</p> <p>According to a company source, &ldquo;Vedanta was able to cut alumina production cost by operating both streams of its Lanjigarh refinery, lower bauxite cost driven by higher quality bauxite, operating efficiencies and rupee depreciation.&rdquo;</p>