Vedanta's Q1 aluminium output up 44% on capacity ramp-ups

Vedanta recorded 44 per cent spike in aluminium production in the April-June quarter. Total aluminium output in the quarter was 0.35 million tonnes despite pot outages at the company's Jharsuguda smelting unit.

The production hike came on the back of capacity ramp-ups at the Jharsuguda-II and Balco-II smelters.

"The Balco-II smelter was ramped up and capitalised during the quarter. Aluminium production was flat quarter-on-quarter, as the continued ramp up at Jharsuguda-II and Balco-II was offset by lower production from the Jharsuguda-I smelter due to the pot outage in early April 2017", Vedanta said in a production statement.

Out of the 228 pots impacted at the Jharsuguda smelter in April, 35 pots have been operational. The balance pots are expected to restart by the third quarter of this financial year. Vedanta exited the June quarter with a run rate of 1.4 million tonnes per year.

Alumina production at Lanjigarh refinery in the quarter too was up 10 per cent at 0.3 million tonnes.

During Q1 of 2017-18, there were no external sales from the 1,800 MW Jharsuguda power plant due to a weak power market. However, the PLFs will continue to increase as we ramp up the Jharsuguda-II smelter.

On coal supplies, domestic linkages contribute to the long-term security of our coal requirements at a competitive price. Vedanta experienced temporary disruptions in domestic coal supply from Coal India during the quarter.

From the coal linkages of six mtpa, which were secured through auctions in Q2 of FY17 for the captive power plants at Balco and Jharsuguda, 1.8 million tonnes of coal were received during the quarter compared to 1.4 million tonnes in Q4 of FY17. In addition to this, the company secured further linkages of two mtpa in July. Coal imports continue to be minimal for aluminium business. In the current fiscal, Vedanta aims to produce 1.5-1.6 million tonnes of aluminium.