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10 OCTOBER 2017 AL CIRCLE

Vedanta reports strong second quarter for aluminium; alumina production affected by bauxite supply issues

EDITED BY : BEETHIKA BISWAS 2MINS READ

Vedanta Resources Plc releases Production report for the Second Quarter and Half Year ending 30th September 2017. Aluminium business reported record quarterly aluminium production. Smelters continue to ramp up through the quarter maintaining a current run-rate of 1.6 mtpa (excluding trial run production).

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During Q2 FY2018, Vedanta’s aluminium production including trial run increased 36% YoY and 14% QoQ to 401,000 tonnes. The increase was primarily driven by ramp ups at the Jharsuguda II smelter and complete ramp up of the Balco II smelter in Q1 FY 2018.

Out of the total 228 pots which were damaged in the April 2017 power outage at Jharsuguda I, 121 pots have been repaired and made operational till date, and the balance pots are expected to be back in action by Q3 FY2018.  Jharsuguda II completed the ramp-up of line-2 out of the four lines in Q4 FY2017. The ramp-up of line-1 and line-3 are continuing with 301 pots and 156 pots being operational respectively, at the end of the quarter. These lines will be fully operational by Q3 FY2018 while line-4 is still under evaluation.

Alumina production for Q2 2017 stood at 269,000 tonnes, 8% lower YoY and 11% lower QoQ. Alumina production was adversely impacted by bauxite scarcity as transport bottlenecks affected bauxite delivery from the mines at Chhattisgarh. Aluminium production in H1 FY2018 increased 39% YoY to stand at 753,000 tonnes on account of the ramp up of additional pots at Jharsuguda II and Balco II. Alumina production was 572,000 tonnes, Just 1% higher YoY due to lower bauxite supply. 

At the end of August, the State Pollution Control Board, Odisha (SPCB), directed a temporary closure of five power units of Vedanta on September 13th 2017 because of a breach in the ash pond dyke wall at Jharsuguda plant.  However, on September 20th, the SPCB revoked the closure of three of these units except one unit. The company had to purchase some external power during the interim seven day period adding to the cost of production for the quarter. The demand supply imbalance and rise in the price of domestic coal prices caused continuing disruptions in domestic coal availability for the captive power plants during the quarter. 

The exit monthly run rate of aluminium production in September was 1.6 mtpa, excluding trial run production. The company expects to produce 1.5 to 1.6 mtpa of aluminium (excluding trial run production) in FY2018.

 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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