Vedanta likely to close Orissa alumina refinery from Dec 5
The mining conglomerate, which runs the alumina refinery through an unlisted subsidiary, Vedanta Aluminium (VAL), had given a closure notice to the state government three months back citing severe shortage of bauxite as the primary reason for the shutdown. “Suspension of operations (of Lanjigarh alumina refinery) is imminent from December 5 due to non-availability of bauxite. We can not help it, Orissa government is yet to give any assurance on bauxite availability. In its absence, running the plant is not sustainable,” a senior company official told PTI.
He added that “we had given a 3-month notice in September to the state government to close operations from December 5 and we are sticking to that date. For last several months, we have been running the plant at lower capacities and incurring losses.”
VAL, in its closure notice to Orissa’s labour and industries department served on September 5, had said that running the alumina refinery is no longer sustainable “unless Orissa government finds a solution for supply of bauxite”.
“The shutdown of refinery is likely to impact 2,500 workforce directly and 4,500 persons indirectly,” he further said.
He, however, clarified that “we are not thinking of any retrenchment at the moment”.
The company has invested R50,000 crore in the refinery along with an aluminium smelter of 1.5 mtpa and a captive power plant.
Top officials of Vedanta group, including its
Be the first to comment.
