Balco plans bauxite mining expansion in Chhattisgarh

Bharat Aluminium Company Limited (Balco) is planning to step up its bauxite mining operations in India in order to address the raw material crises it has been facing at its alumina refining facility. Presently, the Vedanta controlled aluminium company is producing 2 million tonnes of bauxite in a year from two of its mines in Sarguja and Kawardah districts of Chhattisgarh.

Balco had boosted its aluminium output capacity to 5,70,000 tonnes per annum at its Korba unit. Even as the company keeps reeling under raw material crunch, it has feeding the unit with aluminium powder shipped from Australia; but it has been adding significantly to the cost of production. To cope with the situation and curtail cost, Balco now plans to enhance production at its two mines.

According to a Balco spokesperson, the company is aiming at increasing production to 5 mtpa. “While the production in Sarguja mine would be increased to 2 mtpa, the Kawardah mine would be expanded to 3 mtpa,” the spokesperson said.

At present, Balco has clearance for mining 1.25 mtpa and 0.75 mtpa bauxite from Kawardha and Sarguja mines respectively. Mining at Sarguja site remained held up for nearly four years; soon, operations will be resumed at an enhanced capacity, said Balco spokesperson.

Notwithstanding the fact that neither of the two bauxite mines has huge reserve, full resumption of operations at both the sites at enhanced capacity would surely come as a big relief for the aluminium maker struggling with raw material procurement. The reserves at Sarguja and Kawardah are expected to last not more than 3 to 5 years. In the meantime, Balco will be looking for more mining sites in Chhattisgarh.

According to the state mining department officials, two bauxite mines with a capacity of about 20 million tonnes have been lined up for auction.

After Balco's aluminium production capacity expansion, Chhattisgarh would emerge as the second largest aluminium producing state in India. Earlier, it was ranked third. With the enhanced capacity Chhattisgarh would be able to contribute 35 per cent to the country’s total aluminium production.

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