Supreme Court admits NALCO¡¯s petition for hearing on surplus alumina sales to Vedanta

According to the latest market report, Supreme Court admits NALCO’s petition for hearing on alumina sales tender to domestic customers. It was earlier reported that Nalco urged the Supreme Court to challenge Odisha High Court for allowing Vedanta’s Jharsugda unit's participation in the tender floated by Nalco for the sale of surplus alumina.

National Aluminium Company Ltd. (NALCO) is India’s largest producer of bauxite and alumina, the main input materials for aluminium smelting. It uses India’s rich bauxite resources to feed its alumina refinery. The company uses the alumina to produce about 440,000 tonnes of aluminium every year. NALCO’s produced 2.10 million tonnes of alumina in FY2019 and the production should be in the same range in FY20. Also, NALCO exports its surplus Alumina, which has been over 1.3 million tonnes per annum over the last couple of years.

NALCO’s Alumina sale tenders have been getting deferred since 27th March 2019 due to court orders. Odisha High Court gave a verdict on March 27 challenging the ongoing practice of Nalco’s sale tenders to be issued only to overseas customers. The Court granted permission to the mining major Vedanta to participate in the tender floated by NALCO for sale of surplus alumina.  

Market sources say, NALCO would have about 3 to 4 cargoes of alumina stocked-up, which have to be sold in the market effective 30th April 2019, in furtherance to Supreme Court’s order today, admitting NALCO's appeal for hearing. It is likely to lead to an oversupply of alumina in the global market due to the deferred Nalco alumina tenders.

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