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Coal shortage threatens Nalco metal production

Tuesday, Jul 14, 2009
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Bhubaneswar: National Aluminium Company Ltd (Nalco) metal production is under a serious threat as the coal shortage crippled the output of its captive power plant (CPP). Two units of the 8X120mw CPP have been shut down as the coal reserve is fast depleting because of non-supply of coal by Mahanadi Coalfield Ltd (MCL). Nalco, which is supposed to get 14,000 tonne per day from MCL, is getting on an average 10,000 to 12,000 tonne per day in recent months. This has depleted the reserve stock to 1.20 lakh tonne. The crisis is now threatening production from the company’s smelter at Angul. Though Nalco is operating 835 of the 840 pots of its smelter plant, the poor power position is forcing it to run the pots at a high risk. ‘‘Disturbed logistics due to heavy rains and wetness of coal are the reasons of recent shortfall in power generation at the company’s CPP located adjacent to the smelter,’’ admitted a smelter plant spokesperson. The spokesperson, however, added that the situation has started looking up with the company receiving rakes of imported coal and washed coal from Paradip Port. Nalco has imported 1.5 lakh tonne of coal to overcome supply disruptions. Moreover, the spokesperson said, the company has been assured by MCL that the coal supply will be increased soon. With the arrival of supplementary coal, the company will be operating all the units of its CPP soon. The spokesperson clarified that the recent coal crisis has so far not affected aluminium production. source:www.financialexpress.com

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