19th April, 2002
Ministry of Coal  


NALCO POISED TO BECOME A KEY PLAYER IN INTERNATIONALMARKET

ACHIEVES A MAJOR MILESTONE WIH COMPLETION OF CAPACITY EXPANSION


The Union Minister for Coal & Mines Shri Ram Vilas Paswan, formally dedicated the alumina refinery expansion of Nalco to the nation in the presence of Orissa chief Minister Shri Naveen Patnaik. Nalco, India’s leading producer and exporter of alumina, achieved a major milestone with the completion of capacity expansion of its alumina refinery at Damanjodi. The approved capacity cost of Rs. 1664.60 crore on mines and alumina expansion has been funded entirely out of internal resources.

The Minister informed that the alumina capacity has now increased from 8 lakh tonnes to 15.57 lakh tonnes. The capacity of Bauxite mines, which supplies ore to this refinery, has already been doubled to 48 lakh tonnes in December 1999.

The brownfield expansion of alumina complex involving modernization and debottlenecking of existing two streams of 400.000 tonne per year capacity each, is designed to achieve 31% higher production. It also involves addition of a new stream having a capacity 5,25,000 tpy. A number of energy efficient and highly productive process innovations including pre-desilication facility have been introduced in the alumina refinery in technical collaboration with Aluminium Pechiney of France.

Under the current spate of capacity expansions, Nalco’s internal consumption of alumina may jump 4,60,000 tonnes to 7,00,000 tonnes when its smelter capacity goes up from 2,30,000 tpy to 3,45,000 tpy. The company known as one of the lowest cost alumina producers in the world, has so far exported 64.48 lakh tonnes of alumina on cumulative basis, earning Rs.4197.46 crore in foreign exchange by the end of 2001-02 fiscal. With the large-scale expansion of the alumina refinery, Nalco is poised to become a key player in the international market, with nearly a million tonnes of alumina available as exportable surplus per year. To manage larger volumes of exports, the company’s Port facilities at Vizag have also undergone necessary modifications and additions at a cost of Rs. 29 crore.

Nalco has captive bauxite mines on Panchpatmali Hill with bauxite deposit estimated to be 310 million tonnes. The ore excavation and transportation capacity has also been expanded from 24 lakh tpa to 48 lakh tpa at a capital investment of Rs. 120.59 crore. Bauxite ore is directly fed to refinery through a single flight cable belt conveyor spanning 14.6 km over the hills and valleys. The 900 tonnes per hour ore delivery capacity of this unique pollution free conveyor system has been doubled to meet the higher demand of the expanded refinery.

The low cost of expansion and substantial internal funding of the capital will ensure lower production cost of alumina, which has been the hallmark of Nalco in the field of alumina production in the world.