Wednesday, July 30, 2008

Nalco May Close Orissa Facility - July 30 , 2008

National Aluminium Co (Nalco) is facing a major coal scarcity. Currently, the company is running alumina refinery at half its capacity and likely to be forced to close the unit in a few days if the condition does not improve. The company is making daily cash loss of Rs 2.5 crore due to slashing of production. If the situation continues, the company likely to completely close the 1.6- million-tonne alumina refinery located at Damanjodi in south Orissa in a few days.

The unit, on an average, consumes 2,500 tonnes of coal to produce heat for the refining process. But for last ten days, there is no supply of coal to the unit from the linked mines in Talcher and Brajarajnagar under Mahanadi Coalfields (MCL), which has precipitated the crisis. The company has decreased its refinery operations by more than 50 per cent. From a daily average production of 4,500 tonnes, it is now producing only 2,000 tonnes. The unit, at its present decreased capacity, consumes around 800-900 tonnes coal per day.

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