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ALUMINIUM ASSOCIATION OF INDIA
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ALUMINIUM ASSOCIATION OF INDIA
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National Aluminium Company (NALCO) plans to form three subsidiaries |
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State-run National Aluminium Company (NALCO) plans to form three subsidiaries to boost its business diversification aims, a senior company official said Friday.
The subsidiaries may be formed depending upon the progress of the various projects such as metals and power generation the company has planned, Finance Director B.L. Bagra told IANS.
“This may happen earliest within two years or can take five years,” he said.
The new subsidiaries will be named Nalco Metal to deal with metals and mines business other than aluminium, Nalco Power to deal with power projects and Nalco International for its foreign projects, he said.
“Our core business is aluminium business which we want to retain as it is. All the growth oriented investments… in other metals or power or in foreign countries, we want to make through subsidiaries,” he said.
NALCO, headquartered in the Orissa capital, is Asia’s largest integrated aluminium producer. It is also a major player in bauxite mining, alumina refining and smelting with additional business interests in power generation and rail and port operations.
It has signed a deal last year with Nuclear Power Corporation of India to invest in a nuclear power project. It has also planned to invest abroad including in Indonesia and Iran.
Bagra said Nalco is not going to split at all. “The aluminium company will remain as holding company and only subsidiaries would be formed as an investment vehicle,” he added.
Nalco has planned to built a Rs.80-billion (Rs.8,000-crore/$1.6-billion) 310,000-tonne smelter and a power plant in Iran. It has currently approached several banks for funding of about $1 billion required for this project.
It has also planned to build an aluminium manufacturing project in Indonesia. Construction of the plant, conceived to produce 500,000 tonnes of aluminium using about 250 MW each from five power plants each, was expected to commence this year.
Source:http://calcuttatube.com/national-aluminium-company-nalco-plans-to-form-three-subsidiaries-48693/ |
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Iran's biggest aluminum plant launched |
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Iran has launched its biggest aluminum production plant to increase its output capacity by 47 percent to 457,000 tonnes per year.
The Hormozal aluminum smelter plant came on stream at the cost of 400 million Euros and 2 trillion Rials (about $200 million).
Hormozal was officially inaugurated in the southern city of Bandar Abbas on Saturday with the presence of President Mahmoud Ahmadinejad.
The plant is a joint venture between Iran and Italy. The giant project, with an annual production capacity of 147,000 tonnes, would create 7,700 direct and indirect jobs.
The 230 KA technology has been applied in the project, the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) said in a statement.
Iran's aluminum exports have reached approximately $125 million in the first half of the current Iranian year (beginning March 21).
A report released by IMIDRO in October shows a total of 87,693 tonnes of aluminum having been exported in the same period, up 18 percent compared with the previous year.
It says Iran's aluminum output increased by 22 percent to 143,622 tonnes in the same period.
The data shows that two Iranian companies, Iralco and Almahdi, produced 86,544 and 57,078 tonnes of aluminum respectively in the first half of the year.
Source:http://www.presstv.ir/detail.aspx?id=115693§ionid=351020102 |
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The crowded aluminium business
Hard metal |
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High-cost smelters face a bleak future
ON THE face of things, the aluminium business is recovering swiftly from a nasty tumble. In 2009 the parlous state of the global economy pushed spot prices for the metal down below $1,500 a tonne. In recent weeks they have risen above $2,200—a 14-month high. Demand is picking up, particularly in India and China. Chinalco, China’s biggest aluminium-maker, which had idled 10% of its capacity, said in December that it would restart it all. Yet according to Michael Widmer of Bank of America Merrill Lynch, an investment bank, aluminium still has “horrible fundamentals”—in part because outfits like Chinalco continue to open smelters.
Those who consider the industry’s recovery superficial point to the 4.5m tonnes of aluminium stashed in warehouses around the world, far above the typical level of around 1m tonnes. Even when the price was near its lows last year, the futures market was anticipating a rebound this year. So speculators could buy stocks on the cheap, sell futures contracts at higher prices, and simply store the metal until the contracts fell due. Much of that metal will come back into circulation in the coming months.
Demand, of course, should also rise. This year China, the world’s biggest consumer, will probably get through some 14m tonnes. Rio Tinto, a mining giant, forecasts that China’s consumption will more than double to 31.5m tonnes by 2020. But the rest of the world’s aluminium producers are hardly rubbing their hands with glee. The country has huge unused production capacity of around 7m tonnes a year. Although the government wants to close less efficient smelters to save energy, local officials, keen to preserve growth and jobs, are slow to follow its edicts. In principle, Chinese smelters are supposed to pay a market rate for the power they consume, which can account for as much as 40% of costs. But they still benefit from cheap land, labour and loans, and often from “captive” power plants fuelled by abundant local coal. Analysts reckon that China, which unusually imported large quantities of aluminium last year, will again produce a small surplus in 2010.
Overcapacity is not restricted to China. On December 1st smelting started at a plant in Abu Dhabi that, when completed, will be the world’s biggest. Other Gulf states, which are also keen to diversify their oil-based economies, and tend to enjoy cheap electricity generated from local reserves of natural gas, are also building smelters. Last month Alcoa of America, one of the world’s biggest aluminium-makers, announced a joint venture with Maaden, a Saudi Arabian mining firm, to build what they claim will be the world’s lowest-cost smelter (presumably thanks to favourable power deals from the government). Qatar and Oman also have plans for big new projects. Dubai and Bahrain already have big smelters. By 2020 the Middle East will account for 12% of global capacity, reckons the Gulf Aluminium Council, an industry body.
Meanwhile, outside China and a few other developing countries, demand for aluminium is projected to grow only slowly. The upshot is that high-cost Western aluminium producers are in trouble as more low-cost capacity comes on stream. Rio Tinto recently closed Anglesey Aluminium in Britain after its power contract expired. Many other European smelters could close because they are unable to strike cut-price new deals for electricity as older contracts run out. The European Aluminium Association fears that two-thirds of the continent’s smelters are under threat. High electricity prices are also likely to put a stop to new aluminium projects in South Africa. Outside China, at any rate, a producer smelts or sinks according to its position on aluminium’s cost curve.
Source:http://www.economist.com/businessfinance/displaystory.cfm?story_id=15213853 |
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Aluminium price rise to hit car makers |
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MUMBAI (Commodity Online): Rising base metals prices have come as a ampener for several companies like automobile and durable manufacturers. Even as India is set to witness a boom in auto market, the competitive pricing may be hit by the rise in prices of aluminium and copper prices.
Aluminium futures in Shanghai climbed to 17,555 yuan a tonne, their highest level since September 2008, copper futures for March was at $3.3935 a pound, near August 2008 highs, and crude oil traded near a 14-month high at $81 this week.
This will cause a rise in prices of consumer-related goods. The demand for goods are soaring as the governments have cut taxes to boost economic growth following the credit crisis, and the RBI is keeping the policy rates at record low making it easy for consumers, but pushing up overall prices.
Some economists expect rollback of easy monetary policies and stimulus this year as policymakers may stare at demand-led inflation.
Carmakers such as General Motors, Toyota and Fiat have raised prices in India in the past few days after a recent surge in prices of commodities such as steel. More companies are expected to follow, such as real estate developers, who are facing higher cement prices too.
Most steel producers have raised prices of the metal with the average price of hot-rolled coil now at Rs 32,000 per tonne. Tata Steel raised product prices by Rs 2,000 last month. The state-run National Aluminium may raise prices soon, following China’s Aluminium raising of alumina prices 5.7%, the third increase in five months, and the price of aluminium by 7.8%.
Source:http://www.commodityonline.com/news/Aluminium-price-rise-to-hit-car-makers-24492-3-1.html |
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Apar Industries has target of Rs 190, says Rajen Shah of Angel Broking.
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Shah told CNBC-TV18, "So much of power generation capacity is coming up in the country; Reliance Power, Tata Power, Jindal Steel and Power, JP Associates, JSW Energy, Adani Power – they are setting up so many power plants across the country and with so much of power generation capacity coming in over the next two-four years, how is this power which will be generated is going to be transmitted - obviously via aluminium conductors and Apar Industries is one company which makes aluminium conductors. The second company is Sterlite Technologies.”
He further added, “Apar is a significant player in aluminium conductors; it also makes transformer oil which is used in transformer which are setup in power plant. So it is in two products, which are going to do immensely well because of the huge power capacity coming up in the country
“It’s quoting at just about 6 times 2011 earnings vis-à-vis Sterlite Optic which is quoting at almost 13 times. So it is equally good player as Sterlite Optics and it is also into power cables; demand for which is also growing at a very good pace. So there is huge price gap, valuations gap between Sterlite Technologies and Apar Industries. I think this need to correct and there should be significant appreciation in Apar going forward. Target for the day is roughly around Rs 190.”
Source:http://www.moneycontrol.com/news/stocks-views/apar-industries-has-targetrs-190-rajen-shah_434369.html |
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Nalco eyes Rs 25,000 cr by 2020 |
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State-run National Aluminium Company (Nalco) aims to touch a turnover of Rs 25,000 crore by 2020.
A K Srivastava, chairman and managing director, Nalco said, "We expect to reach a turnover of Rs 25,000 crore by 2020. The company's second phase expansion being taken up at a cost of Rs 4400 crore, is in the final stage of completion."
Nalco regulates power supply to smelter on dwindling coal stock
The second phase expansion will scale up Nalco's bauxite production from 48 lakh tonnes per annum at present to 63 lakh tonnes and raise its alumina output from 15.7 lakh tonnes per annum to 21 lakh tones per annum, he said.
Moreover, Nalco's aluminium production will also go up from the current level of 3.45 lakh tonnes to 5.6 lakh tonnes and the company's captive power generation is set to increase from 960 MW currently to 1200 MW following the second phase expansion.
Mine fire hits coal supply to Nalco's captive power plant
Srivastava said the navratna firm had lined up an investment of Rs 40,000 crore on various domestic and overseas projects.
He was speaking at the Ninth Nalco Foundation Day Lecture on 'Global Economic Crisis and Rise of India in the Global Economy'.
Delivering the Foundation Day lecture, B B Bhattacharya, vice chancellor, Jawaharlal Nehru University said, "The global economic crisis has proved that we cannot leave everything to the open markets. A company's success is not driven by ownership, rather it is efficient and accountable management which counts."
Both India and China, poised to be global economic superpowers, have survived the meltdown, he said, adding, "Today, no major economic decision can be taken without consulting India and China due to the growing economic clout of these two countries. Together, India and China buy 50 per cent of the world's steel and China alone buys nearly 30 per cent of the world's cement."
Bhattacharya took a swipe at the Centre's debt waiver scheme for the farmers stating such a measure has been announced five times in the past 20 years and the honest farmers who repay their debt in time feel cheated by the move.
He called for stepping up spending on education sector in India and called for greater corporate funding on research and development.
More India business stories
"Only three per cent of the country's GDP is spent on education. It is shocking to note that the budget of Beijing University alone surpasses the combined budget of all the Central universities in India. Besides, there is lack of corporate interest in funding for R&D", he said. S B Mishra, former Chief Secretary of the Orissa government and A K Vohra, general manager, East Coast Railway also spoke on the occasion.
Source:http://sify.com/finance/nalco-eyes-rs-25-000-cr-by-2020-news-news-kbhbuNieace.htm
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China's Growing Gluts |
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Rana Foroohar
Most people assume China emerged triumphant from the financial crisis: it's still growing 8 percent a year, is flush with cash, and didn't even feel the credit crunch, thanks to a trillion dollars in new bank lending in 2009. But the easy money has led to overconfidence, producing major industrial surpluses; China is making much more than it needs. A recent EU Chamber of Commerce in China report found that aluminium factories are operating at just 67 percent of capacity, and steel at 72 percent--yet Beijing is ramping up production. The same goes for green technology; the country uses only 70 percent of its available wind power, yet more turbines are on the way. All this could result in a destabilizing bout of global deflation as the glut of cheap Chinese goods drives down prices. Combined with another banking crisis--some experts expect 30 percent of new loans to go bad next year--the result could be both a slowdown in China and a global trade war.
Source:http://blog.newsweek.com/blogs/wealthofnations/archive/2010/01/06/china-s-growing-gluts.aspx
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Orissa clears 19 projects with an investment of Rs 30,000 cr |
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BHUBANESWAR: The Orissa government approved the proposal of some 19 projects, including 10 new projects, with a total investment worth of Rs 30,000 crore. The state-level Single Window Committee chaired by chief secretary Tarun Kanti Mishra cleared the project proposals.
Industry Secretary Sourabha Garg said the projects would provide direct employment opportunities for 47,000 people and indirect employment for 94,000.
Mr Garg said the committee approved the proposal of Aditya Alumina for expansion of its refinery from one million ton to 1.5 million ton, aluminium plant from 0.26 million ton to 0.26 million ton and captive power plant from 65 MW to 900 MW at Raygada in south Orissa. The Company will invest in excess of Rs 5000 crore for the expansion.
The Committee also cleared M Tech Auto Ltd to construct an Auto Complex at Tangi near Chowdwar at a project cost of Rs 15,820 crore. The Auto complex would have a 2 million ton [MT] steel plant, a 500 MW thermal power plant. The Project would create job opportunities for 33,000 people. The government, he said, would provide 2500 acres of land to the company to set up the project.
Similarly, the Committee cleared the Adhunik Mettalicks’s proposal to set up a stainless steel plant at a cost of Rs 286 crore at Kuanarmunda in Sundrgarh district. The Company sought 300 acres of land and the project will give direct employment to 5700 employees.
The Committee also cleared the Jindal's proposal to establish 71 ancillary units, including 24 light engineering, five Auto components and eight kitchen and other units at Kalinganagar in Jajpur district at a cost of Rs 704 crore. The project would create job opportunities for 7,000 people. The company would be provided 300 acres of land for the purpose.
He said the proposal of the Gungterman Pieperman of Ispat group to set up a 500 million ton beneficiation plant at Barbail on 250 acres of land in Keonjhar and a 500 million tone pelletisation plant Dhamra in Bhadrak district on 100 acres of land with an investment of Rs 1608 crore for both the plants were also approved.
The Committee okayed Navabharat Ferro Alloys’ proposal to convert its 94 MW capacity captive power plant into an independent power plant at Khadagprasad in Dhenkanal.
Source:http://economictimes.indiatimes.com/news/economy/infrastructure/Orissa-clears-19-projects-with-an-investment-of-Rs-30000-cr/articleshow/5402890.cms |
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Rio Tinto Aluminium Mining Production |
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Rio Tinto Aluminium supports Native Title rights and has continued its alumunium mining operations in consultation with the Traditional Owners of the region. The town of Weipa still formally remains under Rio Tinto Aluminium management, but the Weipa Town Authority has been established to represent residents and assist in the decision making process.
Rio Tinto Aluminium began mining activity at Weipa in the late 1950s, following discovery of the vast bauxite resource by a geologist working for Consolidated Zinc Pty Ltd named Harry Evans in 1955. Evans was assisted by three men, George Wilson, Old Matthew (whose traditional language name was Wak-matha, meaning Stormbird) and Lea Wassell.
In addition to alumunium mining activities, the Western Cape’s other significant industries include tourism, fishing and cattle. Respect for the land and its Traditional Owners is a very important component of life for those who live and work on the Western Cape. Rio Tinto Aluminium has signed an Indigenous Land Use Agreement - the Western Cape Communities Coexistence Agreement - with the Traditional Owner groups around Weipa under which their traditional rights to the land are formally recognised.
Source:http://dontgoway.co.cc/rio-tinto-aluminium-mining-production |
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Nalco regulates power supply to smelter on dwindling coal stock |
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The captive power plant of National Aluminium Company (Nalco) in Angul has started regulating power supply to the smelter, located next to it, owing to acute coal crisis.
The Nalco CPP has reached super critical condition where it has only two days coal supply.
The power supply to the Nalco smelter plant will be regulated till the coal stock of its captive power plant (CPP) stabilizes.
“The CPP is currently feeding 740-750 MW of power to the smelter complex as against the normal requirement of 810 MW needed to run 960 pots. However, there has been no cut in aluminum output despite the short supply of power”, said K S Shreedharan, executive director, Nalco.
He said, the coal supply from the Mahanadi Coalfield Ltd (MCL) has been less than the requirement to run all the units of CPP at optimum level.
He, however, clarified that the fire at the rapid loading system at Nalco's linked Bharatpur coal mine has not hit coal supply as loading of the dry fuel is being carried out through other means. This has been possible due to perfect coordination among the Railways, MCL and Nalco authorities, he claimed.There was a big fire at the rapid loading system at the Bharatpur coal mine under MCL's command area on Tuesday.
Out of the nine 120 MW units in Nalco's CPP, two units are now shut down due to maintenance and other reasons. An average of 740 MW of power is produced from the seven working units. The eighth unit will be on stream after the coal stock situation improves, said Shreedharan.
Sources said, though MCL meets its annual coal supply commitment to Nalco, the supply is not evenly distributed. In some months it is low and in other months it is on the higher side. As a result, in most part of the year, the coal stock of the company is not more than three days supply.
While the company requires 18,000 to 20,000 tonnes of coal everyday to build up its stock, the present supply is 14 to 15,000 tonnes per day.
Nalco's smelter plant has 960 working pots, out of which 740-745 pots are presently operational due to short supply of power. The daily aluminium production stands at about 1200 tonnes.
However, Nalco is now eyeing on more coal supply from MCL so that they can build up stock and produce more power by operating eight units of its CPP.
Source:
http://www.business-standard.com/india/news/nalco-regulates-power-supply-to-smelterdwindling-coal-stock/381538/ |
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