Calculate Embedded Emissions for Unwrought Aluminium (HS7601)

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Payable emissions (tCO₂e/t)

Total CBAM Cost (€)

Notes:
There may be a difference when calculating the price with respect to import volume, carbon price, and benchmark emissions, as the embedded formula may result in minor variations due to decimal rounding. Therefore, the actual value may vary.

CBAM is applicable to trade volumes starting from 50 metric tonnes. For trade volumes below 50 metric tonnes, CBAM does not apply.

Usage Procedure – How to use the CBAM Calculator Sheet

Enter or update values only in the INPUT
PARAMETERS section (Highlighted in blue) , including
the carbon price, benchmark emissions, CBAM
chargeable percentage (as per the phase-in year),
and imported quantity.

The system will automatically calculate the payable
emissions and the total CBAM cost (€) based on the
inputs provided.

Notes:
• Change any input value to automatically update CBAM cost.
• Formula used: Carbon price × payable emissions × quantity.
• Model aligned with CBAM supplier-side illustrative methodology.

01 FEBRUARY 2019 AL CIRCLE

Vedanta aims to cut aluminium production cost to $1,700 per tonne

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to a report by Business Standard, Vedanta intends to cut down its aluminium production cost to US$1,700 per tonne from the current cost of US$ 1,900 per tonne. Per the report, the company aims to do this by the end of the financial year.

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Ajay Dixit, chief executive officer (CEO) of Vedanta’s aluminium and power vertical, said: “We are putting in place a plan to reduce our production cost by the end of this year. The work to this effect has already started.”

Vedanta expects that this production cost cut will improve the viability of its aluminium business, especially in the backdrop of recent softening of metal prices on the London Metal Exchange (LME). The LME price of aluminium in April 2018 was at US$2,600 per tonne and now came down to US$1,870 per tonne by January-end of this year.

“For us, $1800 (per tonne) is the pressure point,” Dixit said.

Vedanta is striving to cut the production cost primarily by working around raw material sourcing and logistics. It is already renegotiating its contracts for bauxite supply with suppliers from Gujarat and Andhra Pradesh and intends to move most of the material through rail rakes to keep the logistic cost down.

Vedanta’s long-term supply agreement with Odisha Mining Corporation (OMC) for sourcing two million tonnes of bauxite from the Kodingamali mines and pact with Emirate Global Aluminium PJSC’s mines in Guinea for the supply of 12 million tonnes of bauxite are expected to further ease the raw material constraints from this year.

“Roughly, we are sourcing 30 per cent of our bauxite requirement from OMC while 30 per cent each is secured through imports and domestic supplies”, Dixit said.

According to him, lack of captive mines affects Vedanta by 15 per cent on its raw material cost compared to companies like Nalco and Hindalco who have their own captive bauxite mines.

Nevertheless, despite all the odds, Vedanta’s aluminium business is reportedly recording operating profits, though not cash profits for the heavy burden of debts.

“We will make cash profit once we have secured source of bauxite and coal supply at competitive prices”, Dixit said.

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