By Bizodisha Bureau, Bhubaneswar, April 9, 2019: Enhanced local sourcing of bauxite from the state-run Odisha Mining Corporation (OMC) has helped Vendanta Ltd to up Alumina production by 24 per cent to reach 1.5 million tons.

It also posted a 17 per cent record growth in aluminium production, following stabilisation and ramp-up of its smelters at Jharsuguda (Odisha) taking the aluminium output to 1.95 ml tons in the last fiscal compared to 1.67 mt in the previous fiscal. This also made Vedanta, the country’s largest producer of the white metal, upstaging Hindalco Industries.

“Improved captive alumina production and locally sourced bauxite are key to drive our aluminium costs lower. The peak run rate at Lanjigarh refinery during the year was 1.8 mtpa (million tonnes per annum)”, Vedanta Ltd said in its production statement.

OMC started feeding Vedanta’s Lanjigarh refinery from Q1 of FY19. OMC has ramped up bauxite output at its Kodingamali mine to achieve a peak rate of 3 mtpa. In line with state policy, OMC liquidates 70 per cent of its mined bauxite to Vedanta under a long-term linkage agreement. The balance quantity is offered for bids at bauxite auctions held within a span of six months.

For Vedanta, coal continues to be a key thrust area. “The linkage coal materialization for the captive power plants has improved in Q4 FY2019 as compared to previous quarters resulting in no power import for the last four months. The company secured 3.2 million tonnes of coal in Tranche IV auction and materialization has started from March 2019. This will improve coal availability and therefore help to drive our costs down”, the statement added.