Updates on Indian Aluminium Industry

September 10, 2014

Prepared By: Carbon Team
Mitsubishi Corporation India Pvt Ltd
edanta plans to e!pand re"nery #apa#ity to $ mtpa
Source: The Free Press Journal, Sep/09
Despite acin! ra" material crunch, #edanta !roup on Tuesday said it plans to
raise the capacity o $an%i!arh &lumina re'nery to ( mtpa in phases, "ith a
total in)estment o *s +0,000 crore,
-t also plans to utilise the ull capacity o its Jharsu!uda smelter, "hich is
producin! %ust about a ourth o its potential,
.Doublin! o the alumina re'nery capacity rom + mtpa to / mtpa "ould be
done "ithin a year o !ettin! all the clearances,0 #edanta *esources
Chairman &nil &!ar"al told ater meetin! 1disha Chie 2inister 3a)een
Patnai4,
*aisin! the capacity urther to ( mtpa "ould depend on a)ailability o
bau5ite, a 4ey ra" material or ma4in! alumina, he said,
The company, "hich had in)ested about *s 6/,000 crore or the pro%ect
nearly a decade a!o, "ill be puttin! in another *s +0,000 crore or capacity
e5pansion, he added,
Similarly, its smelter at Jharsu!uda is producin! only 6 la4h tonnes, /6 per
cent o the installed capacity o /0 la4h tonne, due to inade7uate eed o
alumina, &!ar"al said, &bout a million tonne alumina is no" bein! imported
rom countries li4e &ustralia and Bra8il,
9hile more alumina "ould be a)ailable ater e5pansion o $an%i!arh re'nery,
rest can be imported, he said, &t the same time, #edanta has been
re7uestin! 3alco to pro)ide alumina or Jharsu!uda smelter as the public
sector company is e5portin! it, &!ar"al said,
.1ur )ision is to ensure that our entire aluminium is consumed inside 1disha
"hich "ould bene't la4hs o people and local entrepreneurs in do"nstream,0
he said, #edanta, "hich had set up + mtpa re'nery plant at $an%i!arh in
1disha:s ;alahandi district around < years a!o, has been acin! acute
shorta!e o bau5ite and no" importin! the ra" material rom other states as
"ell as rom abroad to eed its plant, The company had to shut do"n the
plant or some months due to scarcity o bau5ite in /0+/,
The company:s concern or the ra" material had been compounded ater
1disha !o)ernment:s plan to start bau5iteminin! rom 3iyam!iri =ills ailed,
.9e ha)e been !ettin! bau5ite rom other countries and other -ndian states
li4e >u%arat, &ndhra Pradesh and Jhar4hand,0 he said,
-n a bid to o)ercome bau5ite crisis, the company has already entered into a
%oint )enture "ith $?T, he said, -ndia:s lar!est inrastructure company had
been allocated "ith t"o ma%or bau5ite reser)es in the state, &s $?T did not
ha)e a plant here, it "as not !i)en minin! license, &s4ed ho" can the
company e5pand the re'nery capacity "hen it is acin! ore crisis, &!ar"al
said, .The capacity o the re'nery "ould be e5panded to / mtpa in the ne5t
Updates on Indian Aluminium Industry
September 10, 2014
Prepared By: Carbon Team
Mitsubishi Corporation India Pvt Ltd
one year, The plant "ould ultimately ha)e a capacity o ( mtpa "ith
a)ailability o the ra" material,0
Input supply issues do% edanta
Source: Business Standard, Sep/09
$ondon@listed #edanta *esources, the di)ersi'ed metals and minin! ma%or, is
hopeul o e5pandin! capacity o its $an%i!arh alumina re'nery in 1disha to
t"o million tonnes per annum, up rom the e5istin! one mt, "ithin a year o
!ettin! the necessary appro)als,
.9e "ill !radually raise the capacity to si5 million tonnes AmtB a year, -t "ill
ha)e a tremendous employment opportunity or people in the area, The !ram
sabha held recently "as )ery positi)e, 9e !ot o)er"helmin! support rom the
people, "ho "ant industry and de)elopment in the area,0 #edanta chairman
&nil &!ar"al said ater meetin! Chie 2inister 3a)een Patnai4,
=e said the $an%i!arh re'nery "as operatin! at /6 per cent o capacity, The
capacity e5pansion "ould mean *s +0,000 crore e5penditure to the already
in)ested *s 6/,000 crore o)er +0 years to build alumina, aluminium and
po"er acilities at $an%i!arh and Jharsu!uda, respecti)ely,
&ter bein! denied access to the 3iyam!iri bau5ite deposits o 1disha 2inin!
Corporation ollo"in! tribal protests, the $an%i!arh re'nery is operatin! on
bau5ite sourced rom &ndhra, >u%arat, Chhattis!arh and Jhar4hand, .9e are
also importin! bau5ite rom >uinea and other countries, -t is unortunate that
-ndia has the lar!est bau5ite deposits but "e are importin!,0 he said, &s4ed
on the assurance !i)en by the 1disha !o)ernment on bau5ite supply,
&!ar"al said, .The !o)ernment is )ery 4een to !i)e us bau5ite, They are
loo4in! at )arious options, Presently, the $arsen ? Toubro A$?TB bau5ite
deposits is a concrete option, There are a couple o others,0
#edanta had entered a pact "ith $?T to source bau5ite rom the latter:s
Si%imali and ;utrumali deposits, or "hich the en!ineerin! ma%or had !ot a
prospectin! licence much earlier, The t"in deposits, across ;alahandi and
*aya!ada districts, ha)e reser)es o close to C00 mt, =o"e)er, the state
!o)ernment is yet to decide on a minin! lease to $?T, &ter the 3iyam!iri
setbac4, the state !o)ernment recently allotted three laterite bau5ite mines
in ;oraput district "ith a combined deposit o three to ')e mt o bau5ite in
a)our o #edanta, as short@term relie,
.Since the percenta!e o bau5ite is )ery much less in the case o laterite
deposits A/0 to /6 per centB, "e ha)e to in)est more on processin! in such
mines, 9e are currently e)aluatin! these deposits,0 said &!ar"al, The
#edanta chie is also "orried o)er the Jharsu!uda aluminium smelter runnin!
Updates on Indian Aluminium Industry
September 10, 2014
Prepared By: Carbon Team
Mitsubishi Corporation India Pvt Ltd
at depleted capacity, .9e are runnin! at only /6 per cent capacity, 9e need
to ha)e ull po"er to run the smelter, 9e are loo4in! at achie)in! aluminium
production o t"o mt and "ill ensure it is all used "ithin the state, There is a
potential or +00 more aluminium@based industries to come up in the state,0
he said,
edanta bi% #ontender &or %ovt's residual sta(e in
)*L+ A%ar,al
Source: Business Standard, Sep/+0
#edanta !roup, "hich holds ma%ority sta4e in =industan Dinc $td, today said it
"ould bid or the !o)ernmentEs residual sta4e in =D$ and is a Fbi! contenderF
or it,
FThe !o)ernment has started the process o )aluation o its residual sta4e in
=D$ as it "ants to !o or a public oGer,F #edanta *esources Chairman &nil
&!ar"al told reporters here today,
Statin! that #edanta "ould bid or the !o)ernment sta4e durin! public oGer
ater the )aluation and assessment is complete, &!ar"al said: F9e are a bi!
contender,,, 9e "ill certainly bid or it,F
The #edanta !roup chie e5pressed the hope that the process "ould be
completed in /@C months,
Hnion Finance 2inistry has started the process or resh )aluation in its eGort
to push throu!h a lon!@pendin! sale o the !o)ernmentEs residual sta4e in the
company in the current 'nancial year, sources said,
=D$ had a paid@up capital o *s <I6 crore as on 2arch C+, /0+C, The
!o)ernment holds a /9,6IJ sta4e in the company, The !o)ernment had
earlier sold ma%ority sta4e in the erst"hile PSH to the #edanta !roup,
2etal ma%or Sesa Sterlite yesterday sou!ht shareholdersE nod to enhance its
borro"in! limit to *s <0,000 crore or undin! needs in !roup 'rms and
buyin! out !o)ernmentEs residual sta4e in =industan Dinc and Balco,
The &nil &!ar"al@led 'rmEs Board has, in the last "ee4, already passed an
enablin! resolution to increase the limit by CC,CJ rom *s (0,000 crore,
-t said in a BSK 'lin! that the enhancement o limit "as aimed at meetin!
undin! re7uirements o all the !roup di)isions such as iron ore, iron ma4in!,
copper, aluminium production and commercial po"er !eneration,
Updates on Indian Aluminium Industry
September 10, 2014
Prepared By: Carbon Team
Mitsubishi Corporation India Pvt Ltd
-al#o opens ne, sto#(yard at adodara
Source: Business Standard, Sep/+0
State@run 3ational &luminium Company $td A3&$C1B has opened a ne"
stoc4yard at #adodara in >u%arat,
3&$C1 plans to sell around <000 2T per annum rom the stoc4yard and shall
cater to the customers in and around >u%arat, a company release said,
The stoc4yard, companyEs +0th in the country, "as inau!urated by 3&$C1
C2D &nsuman Das yesterday,
Aluminium up 0.2/ on %lobal #ues, spot demand
Source: Business Standard, Sep/09
&luminium prices "ent up by 0,+(J to *s +/(,C0 per 4! in utures trade
today as participants stren!thened their positions, supported by an up"ard
trend o)erseas,
Further, stron! demand in the spot mar4ets also inLuenced metal prices,
&t the 2ulti Commodity K5chan!e, aluminium or deli)ery in 1ctober inched
up by /0 paise, or 0,+(J, to *s +/(,C0 per 4! in business turno)er o I9 lots,
$i4e"ise, the metal or deli)ery in September traded mar!inally hi!her by +6
paise, or 0,+/J, to *s +/6,+0 per 4! in 6+I lots,
2ar4etmen said apart rom increased domestic demand, a 'rmin! !lobal in
copper and other base metals, mainly inLuenced metal prices at utures
trade here,
Supreme Court reserves order in #oal blo#( allo#ation
#ase
Source: Kconomic Times, Sep/09
The Supreme Court on Tuesday reser)ed its order on the ate o /+< coal
bloc4s, allocation o "hich "as declared as ille!al, -t said that it hadnEt
speci'ed any date or the order in coal bloc4 allocation case,
Updates on Indian Aluminium Industry
September 10, 2014
Prepared By: Carbon Team
Mitsubishi Corporation India Pvt Ltd
1n its part the !o)ernment said that there is no need or a panel to hear each
company on coal bloc4 cancellation as it "ould lead to delays,
The SC said that it is not orcin! !o)ernment to ollo" any particular method
on bloc4 a"ards, -t also said that coal bloc4 cancellation impact "ill not be
Ese)ereE,
Karlier in the day the !o)ernment spo4e in a)our o cancellation o coal
bloc4s allocations "hich "ere declared ille!al by the ape5 court, =o"e)er, it
stated that the retention o I( bloc4s "hich are in operation or are to be
operated soon should be considered,
-n sum and substance, the cancellation o coal bloc4 allocation is a natural
conse7uence, it said,
&n aMda)it 'led by the 2inistry o Coal on 2onday incorporated the
statements made by the &ttorney >eneral 2u4ul *ohta!i on September +
that the Centre has Fno ob%ectionF to the cancellation o allocations declared
as ille!al by the the ape5 court and "as also not insistin! on any particular
course o action,
>i)in! details as directed by the Court about the I0 producin! bloc4s and si5
li4ely to come under production durin! the year /0+I@+6, the aMda)it said
they Fare estimated to produce about 60 million tonnes o Coal in the current
year,F
The ministry placed beore it the !ist o inormation about minin! lease,
commencement o production and lin4ed Knd@Hse Production AKHPB
in)estment recei)ed rom allocatees o these I0 productional coal mines and
si5 on )er!e o production,
1ut o I0 unctional mines, t"o are allocated to an Hltra 2e!a Po"er Pro%ect
AH2PPB, "hich has not been declared as ille!al by &u!ust /6 %ud!ement, it
said,
Further, the aMda)it said the si5 coal bloc4s "hich are li4ely to come under
production "ere determined by the Coal ControllerEs 1r!ani8ation ACC1B, as
they ha)e recei)ed mine openin! permission under *ule 9 o the Colliery
Control *ules, /00I ArAramed under 22D* &CT, +96NB, "hich is the 'nal
step to"ards openin! o the mines,
The ministry, "hich !a)e details o inormation o +6 li!nite bloc4s recei)ed
rom the allocatees, also stated some o the hurdles it "as acin! as a result
o the ape5 court %ud!ement and sou!ht suitable directions,
-t said the numbers o allocatees ha)e ac7uired title o the land in respect o
coal bloc4s "hich "ere allocated and no" are held as ille!al and on re@
allocation those pre)ious allocatees be directed to Fre@con)eyF the land to
Updates on Indian Aluminium Industry
September 10, 2014
Prepared By: Carbon Team
Mitsubishi Corporation India Pvt Ltd
Central !o)ernment,
FHpon cancellation o the coal bloc4, the title o the land "ould still remain
"ith the allocatee, -n the e)ent o subse7uent !rant o the coal bloc4, it may
not be possible or the !rantee to obtain title o the land rom the earlier
o"ner,F it said,
last month, the Supreme Court declared the allocation o about /00 coal
bloc4s bet"een +99C and /009 ille!al, raisin! the prospect o cancellations
that could put the bra4es on -ndiaEs reco)ery "ith any such mines li4ely
ha)in! to be auctioned oG,
The bench headed by Chie Justice o -ndia *2 $odha came do"n hea)ily on
coal bloc4 allocations made throu!h the screenin! committee and
!o)ernment dispensation routes, callin! them ille!al as they "ere arbitrary
and suGered rom le!al La"s,
FThe screenin! committee has ne)er been consistent, transparentO there is no
proper application o mind, it has acted on no material in many cases,
rele)ant actors ha)e seldom been its !uidin! actors, there "as no
transparency and !uidelines ha)e seldom !uided it,F the bench had said,
0overnment May Can#el S1*s o& )indal#o, 1ssar,
Adani
Source: 3DT# Pro't, Sep/09
>o)ernment is li4ely to cancel the appro)als !ranted by it to nine companies
includin! =indalco -ndustries, Kssar and &dani or settin! up o special
economic 8ones as no "or4 has been done to e5ecute the pro%ects,
The De)elopment Commissioners ha)e recommended to the Board o
&ppro)al to cancel these SKD pro%ects, The ormal appro)al had been !ranted
to these pro%ects by Bo&,
F=o"e)er, since there is no si!ni'cant pro!ress made by the de)eloper/co@
de)eloper, the concerned DC has proposed or cancellation o ormal appro)al
!ranted to the de)eloper,F the a!enda o the Bo& meetin! said, The meetin!
is scheduled or September +<,
=indalco -ndustries has proposed to set up an aluminium product SKD in
1rissa,
The ormal appro)al to the de)eloper "as !ranted in July /00N, The de)eloper
"as !ranted e5tension rom time to time and the last e5tension !ranted has
e5pired on December C+, /0+C, accordin! to Bo&,
Updates on Indian Aluminium Industry
September 10, 2014
Prepared By: Carbon Team
Mitsubishi Corporation India Pvt Ltd
FThe de)eloper did not ma4e any re7uest or e5tension, DC FSKD had ta4en
up the matter "ith the de)eloper, the last reminder "as sent on +C,0<,/0+I
!i)in! +0 days time,
FSince no communication has been recei)ed, DC has recommended or
cancellation o ormal appro)al o ++6 hectare and in@principle appro)al or
NI0 hectare,F it said,
Kssar Jamna!ar SKD $td had proposed to set up a multi@product 8one in
>u%arat, The ormal appro)al "as e5pired in &u!ust /009,
The de)eloper did not ma4e any re7uest or e5tension, it said, addin! that
the DC had ta4en up the matter "ith the de)eloper but no communication
has been recei)ed,
Similarly, &dani To"nships ? *eal Kstate Company $td had proposed an
-T/-TeS 8one in >u%arat,
FThe ormal appro)al e5pired on ++,0(,/0+0, The de)eloper ,,,has reported
that they could not proceed "ith the SKD pro%ect due to ad)erse demand
scenario rom -T sector,
F&ccordin!ly they are not interested in perusin! the pro%ect, DC has
recommended that the ormal appro)al may be "ithdra"n,F it added,
The other de)elopers "hose SKDs may be cancelled include Chennai Business
Par4, -nte!rated 9arehousin! ;andla Pro%ect De)elopment and >u%arat
-ndustrial De)elopment Corporation,
&s per the SKD *ules, ormal appro)al is )alid or a period o three years by
"hich time at least one unit has to commence production and the 8one
becomes operational rom the date o commencement o such production,
Pro)ision to this rule pro)ides or e5tension o this ormal appro)al by Bo&, or
"hich the de)eloper "ill submit his application to the concerned DC, "ho
shall, "ithin +6 days or"ard it to the Board "ith his recommendations,