Dec 19 2005
The Board of Vedanta Resources plc (“Vedanta”) has approved a US$2.1 billion green-field 500,000 tpa aluminium smelter project together with an associated 1,215 MW captive thermal power plant in Jharsuguda, Orissa in India (the “Jharsuguda project”). Upon completion, this will increase Vedanta’s total aluminium smelting capacity to 900,000 tpa, placing it among the largest integrated producers of aluminium worldwide. The Jharsuguda project will repeat the project framework and technology of the Korba smelter that was successfully commissioned recently.
The Jharsuguda project will comprise two pot lines each containing 288 cells. It will be implemented in two phases of 250,000 tpa each and is expected to commence construction in June 2006. Construction of the first phase is expected to complete in the second half of 2009 and the second phase is expected to complete by the end of 2010. The associated thermal power plant will totally comprise nine units of 135 MW each, of which five units of 135 MW each will be commissioned as a part of the first phase. The commissioning of the power plant units is being scheduled to meet the power requirement of the new Jharsuguda smelter and is based on the modular 135 MW configuration deployed successfully at Korba.
The experienced in-house project management team that implemented the Korba smelter project on schedule will manage this project. Vedanta’s green-field 1-1.4 mtpa alumina refinery in Orissa is scheduled to be commissioned in early 2007. This refinery would feed the alumina required for the new Jharsuguda aluminium smelter.
The total investment in the Jharsuguda project is based on the green-field nature of the project and is estimated at US$2.1 billion, to be phased over five years. This investment includes the cost of building the smelter, the associated power facilities and all necessary infrastructure including railway networks, water pipelines and a township for employees. The investment will be funded through a combination of internal resources and external financing.
“The Jharsuguda project is the next phase of our growth in becoming a million tpa producer of aluminium. It further enhances our ability to produce aluminium at costs that are in the lowest quartile of the industry cost-curve.” said Anil Agarwal, Executive Chairman, Vedanta Resources plc. “India is a fast emerging and attractive resource destination and this project harnesses India’s high quality wealth of mineral resources at low costs of development.”