Vedanta invests USD 300 M Capex on Lanjigarh refinery

07 January 2019

Metals and mining giant Vedanta Ltd has planned a Capex (capital expenditure) of USD 250 300 M in the next fiscal on the ramp-up of its Lanjigarh alumina refinery in Odisha.

Lanjigarh alumina refinery
Source: Google

Vedanta has proposed to expand the capacity of the refinery to 6 million tonnes per annum (mtpa).

Vedanta has a long-term linkage pact with state-run miner Odisha Mining Corporation (OMC). As per the terms of this agreement, 70% of bauxite extracted by OMC from its captive Kodingamali mine would be supplied to Vedanta's Lanjigarh refinery. As the mine ramps up, Vedanta expects to source 250,000 tonnes bauxite each month.

The first phase of the Lanjigarh refinery would see the unit scaling capacity of 4 mtpa. By the end of this fiscal, Vedanta expects an exit run rate of 2 mtpa at the refinery.

Vedanta is investing INR 64.83 B on the refinery ramp-up. But unlike the other primary producers, Vedanta is not fed by captive bauxite mines, posing a challenge to contain its metal costs.

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