Balco to boost bauxite production in Chhattisgarh mines

The company has been meeting its demand for raw materials by shipping aluminium powder from Australia so far

Vedanta-controlled Bharat Aluminium Company Limited (Balco) is planning to enhance its bauxite production to meet the raw material crises.

At present, Balco is producing 2 million tonnes per annum (mtpa) of bauxite from the two mines it had been allotted in Kawardha and Sarguja districts of Chhattisgarh. 

The company had enhanced its aluminium production to 5,70,000 tonnes per annum in its Korba facility.

Even as Balco reels under severe raw material crises, it has been meeting the demand by shipping aluminium powder from Australia. But the process has been a costly affair. The company now plans to expand the production in its two mines.

According to the company's spokesperson, Balco was looking to increase production to 5 mtpa. “While the production in Sarguja mine would be increased to 2 mtpa, the Kawardha mine would be expanded to 3 mtpa,” said the spokesperson.

At present, the company has clearance for mining 0.75 mtpa and 1.25 mtpa bauxite from Sarguja and Kawardha mines respectively. Sarguja mine would resume operations after nearly four years as production was suspended for a brief period in-between.

Both the mines would be a breather for Balco even though neither of them has a big reserve. They will, however, last for 3 to 5 years. In the meantime, the company will be looking for more mining sites in the state. Incidentally, two bauxite mines with a capacity of about 20 million tonnes are set for auction, according to mining department officials.

London-listed Vedanta has a 51 per cent stake in Balco, while the remaining share belongs to the Indian government.

After the capacity expansion in Balco, Chhattisgarh would emerge as the second largest aluminium producing state in the country. Earlier, the state was ranked third. The enhanced capacity would also help Chhattisgarh to produce 35 per cent of the country’s aluminium.