Vedanta plans capex of $300 million for FY20

AL Circle

Vedanta Ltd has proposed to invest $250-300 million in the next fiscal for ramping up the alumina refinery capacity at Lanjigarh. The company has planned to expand the capacity to six million tonnes per annum from its current 1 million tonnes.

{alcircleadd}

Metals and mining giant Vedanta expects to recover the invested sum within two years, banking on locally sourced bauxite to trim logistics costs, Business Standard reports.

 “Every tonne of aluminium produced with the Odisha sourced bauxite which can be used in expanding refinery capacity, will give us Ebitda (earnings before interest, taxes, depreciation and amortisation) advantage of $400 per tonne. So, if you are able to cover 50 per cent or 60 per cent of our requirement, then to that extent, $200 to $250 straight away goes up in the Ebitda margin on a permanent basis because reserves will last easily for 15 years and more mines will come up”, Arun Kumar, chief financial officer of Vedanta Ltd at the company's recent results conference call.

“Our Lanjigarh refinery expansion will happen in a staggered manner. In Phase-I, we will scale up capacity to four mtpa and we hope to achieve this by March 2020. At full ramp-up, our dependence on imported alumina will trickle to nil”, a senior Vedanta Ltd executive had said.

Recently, Vedanta has sealed a long-term bauxite sourcing contract with Odisha Mining Corporation (OMC), according to which, 70 per cent of the bauxite mined by OMC at its Kodingamali mines will be supplied to Vedanta. The company expects to source 250,000 tonnes of bauxite per month.

Edited By:


This news is also available on our App 'AlCircle News' Android | iOS


Alternate Text
EPIQ Machinery

A world class equipment designer specialized in developing innovative & effective solutions for heavy equipment, vehicles, and material handling systems

Alternate Text
RIA Cast House Engineering

Leading supplier of rail mounted precision Furnace Charging Machines and Furnace Skimming Machines

Alternate Text
Altek

Leading manufacturer of value-added equipment for the aluminum casthouse

Alternate Text
XIAN HUAN-TAI TECHNOLOGY

Your reliable partner in aluminum casthouse equipment and products

Alternate Text
CETAG

A supplier of proven systems and an expert adviser in aluminum casthouse technology, offering its services worldwide to the aluminum industry.

Alternate Text
IBAAS​-IIM 2024

September 25-27, 2024 | BITS Pilani K K Birla Goa Campus, Goa, INDIA

Related
Business Leads
We have buying requirement of Aluminium Trihydrate. ...
16-Jul-2024 Buying request

We are interested in buying low sulphur green petroleum coke...
26-Jun-2024 Buying request

Interested to buy aluminium powder. Destination :  Amravti,...
10-Jan-2024 Buying request

Read this news article and much
more on the AL News app
Get real-time news and business
lead alerts on your phone
SUBSCRIBE NOW
Market

Market

Project

Project

Technology

Technology

Leads

Leads