Press Trust of India
New Delhi, August 27: Vedanta Aluminium Thursday said it has started the closure process of one of its production stream, which will lead to the Lanjigarh facility’s output declining to half and impacting up to 2,000 jobs. The mining conglomerate Thursday said that the collapse in aluminium prices and lack of bauxite availability from Orissa had forced it to opt for a gradual closure of its Lanjigarh facility in the state.
“It is a gradual closure. With no visibility in terms of bauxite linkage, volatility in global metal prices and sharp fall in aluminium rates, we are pained to take this decision for the Lanjigarh facility,” Vedanta Aluminium CEO Abhijit Pati told PTI. The company has started the process of partial closure and is closing one of the two streams, which will lead to a drop in the plant’s production capacity by about half. “This closure will take about two months and if such a situation persists then we will be forced to shut down the second stream as well, but I’m hoping that something can happen in the meanwhile,” Pati said.
Vedanta’s aluminium arm is one of the country’s largest producers of the metal and operates the refinery, which has a capacity of one million tonne per annum (MTPA). On impact of the shutdown on jobs, Pati said it “will impact about 2,000 jobs, both direct and indirect.” Vedanta Aluminium’s Lanjigarh plant provides direct employment to 2,000 people and indirect to another 8,000. Pati urged the government to take a serious note of the issues facing the aluminium industry in the country. “It is not only about taking decision, but also about taking when the time is right. Here time is of essence,” he added.
