New capacity helps boost Vedanta's aluminium and alumina production

UK-listed Indian metals producer Vedanta reported strong year-on-year increases in both aluminium and alumina production in Q3 2007 and for the first half of the company's financial year (calendar Q2 and Q3 2007). Aluminium production was 99,000t in Q3 07, up from 79,000t in the year-earlier period. Production over the Apr-Sep 2007 period was 196,000t, up from 155,000t in the year-earlier period. That increase largely reflected full production from the company's Korba complex, where capacity was lifted to 345,000tpy a year ago. The boost to alumina production to 102,000t in Q3 07 from 77,000t in Q3 06 reflected the first production (28,000t) from the new 1.4 million tpy Lanjigarh refinery in the eastern state of Orissa. Vedanta said the second stream of the new refinery would be commissioned by December 2007 with first and second streams to be fully stabilised by the end of Q1 2008. At the moment Lanjigarh is operating using purchased bauxite because of a hold-up in government approval to develop the associated local bauxite mines. Vedanta noted that the Ministry of Environment and Forests has given a positive recommendation to the Supreme Court of India. "We are hopeful of a positive resolution of this matter soon," the company said.