Vedanta to expand capacity V - Metalworldmetalworld.co.in › Newsletter › 2019 › august2019 ›...
Transcript of Vedanta to expand capacity V - Metalworldmetalworld.co.in › Newsletter › 2019 › august2019 ›...
News Round Up
August 201937METALWORLD
edanta is prioritizing Vcontrolling costs as it
embarks on expanding capacity,
according to the Chief Executive
Officer Srinivasan Venkatakrishnan.
According to a report,
Venkatakrishnan, who was the CEO
of Johannesburg-based AngloGold
Ashanti Ltd for five years before
taking the helm at Vedanta in 2018,
said that “Any expansion plans, we
will do it with the strictest capital
discipline and balance sheet focus.
We will control the purse strings
quite tightly.”
He further said that Vedanta
plans to double alumina capacity at
its refinery in the eastern state of
Odisha to 4 million tonnes over the
next 2.5 years and raise aluminum
Vedanta to expand capacity
smelter production capability by
30% to 3 million tonnes “at an all-in
cost of less than USD 1,500 a tonne.
He further said that “Every
business has to earn its right to
spend the capital before we spend
the capital. Hence, we said let’s first
drive the cost down before we actually
go ahead with the expansion.”
Owned by billionaire Anil
Agarwal, Vedanta plans to spend
USD 7.8 billion to boost output
across its businesses as it seeks to
tap into the demand created by
India’s ambitions of upgrading its
infrastructure. Capital expenditure
for the aluminum unit is estimated
at $100 million in the year ending
March, Venkatakrishnan said.
The company has been able to
bring aluminum production
expenses from USD 2,200 a tonne
last year to about USD 1,764
largely due to lower alumina
prices and higher coal supply
security, he said.
He added that “We are
targeting coal security of around
90% of our requirement from
around 72% now and that would
see our cost come down.”
EGA exports bauxite from Guinea
Emirates Global Aluminium
(EGA) has announced the
first exports of bauxite ore from
Guinea Alumina Corporation (GAC),
its mining project in the Republic of
Guinea in West Africa.
The first exports of bauxite ore
from GAC mark the completion of
EGA’s strategic expansion
upstream in the aluminium value
chain to create an integrated
global aluminium giant. The GAC
project, and Al Taweelah alumina
refinery where EGA began
production in April, create new
revenue streams for EGA and
secure at competitive prices the
raw materials that the UAE’s
aluminium industry needs.
EGA's GAC project is one of
the largest greenfield
investments in Guinea in the last
40 years, and cost some $1.4
billion to develop. More than half
the funds were provided by the
largest greenfield mining project
financing ever in Guinea - a $750
million loan from development
finance institutions, export credit
agencies and international
commercial banks.
GAC is expected to make a
direct, indirect and induced
economic impact of some $700
million each year in Guinea once
production is fully ramped-up, a
5.5 per cent boost to the
national GDP.
SIAM requests forreducing GST
jan Wadhera, President, SIAM Ahas reiterated the request of
the Auto Industry for an immediate
reduction in the GST rate to 18%.
The need for an immediate
reduction in GST rates has been
agreed unanimously amongst all
members of the automobile
manufacturers including the two
wheeler OEMs. This was also
reiterated at a recent meeting with
the Finance Minister where all OEMs
representing passenger vehicles,
commercial vehicles and two
wheelers had actively participated.
Pawan Munjal, Chairman of
Hero MotoCorp, the largest
manufacturer of two wheelers in
India, had emphasised on this
point on immediate GST
reduction at this meeting with the
Finance Minister.