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UC Rusal<br />

Bauxite and alumina activities<br />

Vedanta’s india bauxite<br />

mining to begin by october<br />

Vedanta Resources Plc. will begin<br />

bauxite mining for its alumina plant<br />

in eastern India by October and will<br />

invest USD1.23bn to expand its capacity<br />

sixfold by 2011. The start of the<br />

mining to feed the alumina refinery<br />

in India’s eastern state of Orissa has<br />

been <strong>de</strong>layed for at least four years by<br />

protests from indigenous people, who<br />

consi<strong>de</strong>r the area that will be mined<br />

as sacred ground. In August 2008,<br />

India’s Supreme Court allowed the<br />

London-listed company to proceed to<br />

mine bauxite from open-cast mines.<br />

Vedanta has so far invested USD823m<br />

in the plant, and will spend another<br />

USD1.23bn to expand the capacity to<br />

6m tpy from 1m tpy by 2011. The company<br />

has <strong>de</strong>posited USD28m with the<br />

government as payments to ensure it<br />

preserves wildlife, does reforestation<br />

projects and launches <strong>de</strong>velopment<br />

work for resi<strong>de</strong>nts. The Orissa Mining<br />

Corp., Vedanta’s joint-venture partner,<br />

will supply 150m tpy of bauxite<br />

to Vedanta’s plant from various locations,<br />

including Niyamgiri, which has<br />

a 79m-tonne <strong>de</strong>posit.<br />

Venezuela’s CVG Bauxilum announces<br />

Usd110m recovery plan<br />

Venezuelan bauxite and alumina producer<br />

CVG Bauxilum has announced<br />

an immediate recovery plan worth<br />

236.5 million bolivares (USD110m)<br />

ALUMINIUM · 9/2009<br />

to enable it to produce 3,200 tpd of<br />

alumina throughout the second half.<br />

CVG Bauxilum expects a total output<br />

of 1.4m tonnes for 2009 once the recovery<br />

plan has been completed. The<br />

boost in output for the second half<br />

would allow the company to feed<br />

the domestic market and attend sale<br />

commitments in the international<br />

market. Around 183.85m bolivares<br />

(USD85.5m) will be used to revamp<br />

works and to purchase raw materials<br />

in Venezuela and other countries. The<br />

remaining money will be used to pay<br />

the company’s workforce labour benefits.<br />

CVG Bauxilum did not say when<br />

it intends to finalise the 236.5m bolivares<br />

(USD110m) investment, but it is<br />

likely that the capital will be spent by<br />

December. The company is aiming to<br />

produce 1.65m tonnes of alumina in<br />

2010 and, afterwards, intends to reach<br />

its installed capability of 2m tpy, with<br />

further investment of 610.6m bolivares<br />

(USD284m).<br />

Chinese firm buys 2.5m t<br />

of alumina from Trafigura<br />

China’s CPI Mengdong Energy Group,<br />

the parent of smelter HMHJ <strong>Alu</strong>minium,<br />

has agreed to import 2.5m tonnes<br />

of alumina from international trading<br />

house Trafigura Group. The alumina<br />

will be shipped in equal amounts<br />

to the Chinese buyer over ten years<br />

from 2010. The alumina will be priced<br />

at less than 14% of the price of the<br />

three-month aluminium contract of<br />

C o m p a n y n e w s w o r l d w i d e<br />

the LME. The contract also set the<br />

maximum and minimum prices for<br />

alumina. That term price was about<br />

10% lower than prices for current<br />

spot alumina to China. Trafigura’s<br />

contract will cover 18% of HMHJ’s<br />

alumina needs in 2010, which are<br />

about 1.4 m tonnes. HMHJ’s facilities<br />

in Inner Mongolia can turn out<br />

700,000 tonnes of primary aluminium<br />

in 2010 and that output will consume<br />

around 1.4m tonnes of alumina. China<br />

produced more than 90% of its alumina<br />

needs in the first half of this year<br />

at 10.62m tonnes.<br />

alumar refinery completes<br />

2m tpy alumina expansion<br />

The <strong>Alu</strong>mar alumina refinery in Brazil<br />

has increased production as a result<br />

of a 2m tpy expansion project. With<br />

the project 98% complete, the refinery<br />

will ramp up to full production<br />

throughout the second half of the<br />

year. Total production capacity will<br />

increase to 3.5m tpy from 1.5m tpy.<br />

Alcoa is the majority stakehol<strong>de</strong>r with<br />

54%, while BHP holds a 36% stake<br />

and Rio Tinto Alcan holds the remaining<br />

10% share.<br />

nalco expects to get andhra<br />

pra<strong>de</strong>sh bauxite mines soon<br />

India’s Nalco expects to receive mining<br />

leases for its proposed 4.2m tpy of<br />

bauxite and 1.4m tpy alumina projects<br />

in September 2009. Now that the Andhra<br />

Pra<strong>de</strong>sh government has recommen<strong>de</strong>d<br />

that the central government<br />

should grant bauxite mining leases to<br />

Nalco in East Godavari and Visakapatnam<br />

districts of the state, Nalco has<br />

crossed the first hurdle to the Rs70bn<br />

(USD1.4bn) bauxite mining and alumina<br />

refinery project. The leases<br />

cover 85m tonnes of bauxite reserves<br />

of the same quality as Nalco’s other<br />

mines, 20 km away in Orissa state.<br />

However, due to a lack of land, ore<br />

from the Andhra Pra<strong>de</strong>sh mines will<br />

have to be transported 20 to 30 km<br />

to the refinery, unlike Nalco’s current<br />

operations, where mine and refinery<br />

are nearby. Nalco is one of the world’s<br />

lowest cost alumina producers ➝<br />

47

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