Nalco aims to cut aluminium output cost by 9%

Company to adopt energy-efficient technology, ramping up metal output through brownfield expansion

National Aluminium Company aims to reduce the cost of aluminium production by 8-9 per cent by adopting energy-

efficient technology and ramping up metal output through brownfield expansion.

"Since the price of aluminium in the international market remains subdued and is likely to remain so for sometime due to Chinese factor, we are working on a strategy to cut production cost and maintain profitability", said T K Chand, chairman cum managing director (CMD), Nalco.

The strategy hinges on two things. First, the company plans to add a new potline near its current smelter plant location at Angul based on the latest techonology and second, go for modernisation of the exisiting potline at the smelter.

It may be noted, the company has decided to set up a new semlter of 0.4 million tonne capacity and 500 Mw power complex at Angul at an estimated investment of Rs 14,000 crore. For the new potline, it has identified to use AP-Xe technology which would reduce the consumption of electricity, a key input for aluminium making, by 700 kwh.

Similarly, in the existing smelter, it has decided to overhaul the potline by changing over to AP2x technology which is expected to bring down the energy consumption by 600 kwh.

"Energy constitutes a big chunk of aluminium output cost and our focus is to save cost by adopting energy effiecint technology", Chand said.

In addition, the company is in talks with Iranian smelters for toll-smelting of its surplus alumina which is exported currently.

The price of aluminium is six times that of alumina. By converting the surplus alumina into aluminium by taking advantage of availability of low cost energy in a country like Iran, we can boost out topline and bottomline", Chand said, adding, äll these strategies together can cut aluminium output cost by 8 to 9 per cent and help boost the profitabuility of Nalco in a subdued market.