He said that meanwhile, as the demand for metals like nickel and cobalt in India is increasing with the mainstreaming of electric vehicles, Vedanta is looking for foreign mines to ramp up production at its recently acquired Nicomet plant. Metals are needed to make batteries for EVs.
On the rise in aluminum prices, Duggal said that Russia has 6 million tonnes per annum aluminum production capacity out of 72 million globally. Russian aluminum may not be available in the global market due to sanctions imposed on the country following the invasion of Ukraine, creating a global shortage of the metal.
Meanwhile, in Europe, there was a shortage of energy even before the war, and it has only worsened since, leaving nearly one million tons of smelting capacity out of action, he said.
The company is looking to increase its aluminum production by commissioning three coal mines it recently acquired through an auction in Odisha. He said that one mine would be commissioned this month, the other by the end of this year and then the last by the end of next year.
Aluminum smelters may also have to increase their focus on recycling; A direction Vedanta was also keen to take, he said.
On the London Metal Exchange, aluminum prices have risen nearly 60% over the past 12 months to levels around $3,500 for a ton of the metal.
The company is also looking to expand its steel production capacity and acquire an additional blast furnace for ESL Steel. Duggal said it has got environment clearance to increase the capacity of its two mines.
Duggal said Vedanta is also restarting the Nicomet plant in Goa which it acquired late last year. With a capacity of about 7,000 tonnes per annum, the plant is under renovation. The company plans to increase production at this plant to 40,000 tonnes per annum in the coming two years.
While Silvassa Refinery will supply some of the secondary raw materials to purify this plant into nickel, the company is exploring mines in African countries such as South Africa, Zambia and the Democratic Republic of the Congo for the primary raw materials.
Separately, Vedanta’s copper smelting plant at Thoothukudi in Tamil Nadu has been closed since 2018 following violent protests by Sterlite Copper residents. The Supreme Court is hearing this matter.
Duggal told ET, “It has been a social and political issue. We believe we should be able to sort it out.’
The company has a copper refinery and wire rod plant at Silvassa, Gujarat. The plant is operational and caters to the domestic market
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