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News & Statistics
Minerals & Metals Review is organizing an industry seminar on “Aluminium Technologies and its Wide Applications” on December 4th 2010 at Pragaiti Maidan, New Delhi in association with Zak Trade Fairs & Exhibitions which will be holding a three day “Aluminium Extrusions Expo 2010” from 3rd to 5th December 2010.

This event will focus on discussions related to innovative products and technology, assessment of market needs and sharing of latest developments in the aluminium industry. Through presentations by industry experts and via group discussions, the seminar will explore topics such as:
1.Smelting
2.Casting and Remelting
3.Semi production – Extrusion and Rolling
4.Application of aluminium in Transport, Building, solar energy, general engineering and packaging.

For further details contact:
Ms. Bina Verma,
CEO
Minerals & Metals Review
E-mail: events@mmronline.com
Indian aluminium exports may rise by year end
BS reported that India’s aluminium exports are likely to pick up within the next 2 quarters due to falling inventories at the London Metal Exchange and revaluation of the Chinese yuan.

Mr AK Sharma director production of National Aluminium Company Limited said that “Currency float by China will have a positive impact on exports, but may not affect growth substantially. However, aluminium demand in the international market is sound and will get support from the decreasing inventory of the metal at LME.”

Mr Sharma said that Nalco had been selling aluminium at a premium of close to USD 90 per tonne of late and expected the trend to continue.

He said that aluminium prices were hit due to the sovereign debt crisis in some European nations. Prices, which reached close to USD 2,316 per tonne for 3 month delivery in April, had fallen 16% to USD 1,930 per tonne in June. At present, aluminium for 3 month delivery is around USD 2,000 per tonne.

He added that we expect prices to stabilize at the current level. They may touch USD 2,150 per tonne by December.

Hindalco, in a recent briefing for analysts said that China would use 18% more aluminium this year, while Indian consumption was expected to rise 18% to 1.664 million tonnes. The domestic production of aluminium is estimated at 3 million tonnes per year. The report also pointed out that world consumption would be 22.592 million tonnes during the current financial year.

(Sourced from Business Standard)
Source:
http://www.steelguru.com/metals_news/Indian_aluminium_exports_may_rise_by_year_end/155987.html

Base Metals Rise on Possible China Moves
Base metals continue to trade in the green despite unfavorable economic data releases on Monday. Metals are taking their cues Tuesday from Asia, particularly China where there are reports the Chinese government may relax its policy-tightening measures. Furthermore, the government plans to allow overseas investors to trade derivatives contracts, encouraging foreign capital into the equity market.

Copper
Copper for delivery within three months was trading 1.2% higher at $6,582 in the early hours of trading Tuesday on the London Metal Exchange. Copper inventories maintained by LME declined for the 22nd consecutive day equivalent to the year's longest period of declines. Inventory levels shed 3,575 tonnes to close at 422,850 tonnes Monday.

Major copper producers in the world are trading very close to their resistance levels. Southern Copper(SCCO), which closed at $29.27 in the previous trading session, has support at $29.03, while resistance lies at $29.58. Meanwhile, Teck Resources(TCK) closed at $31.32 with support and resistance at $30.79 and $31.99, respectively.

Aluminum
Aluminum for delivery within three months gained 0.5% to $1,982 per ton Tuesday. On Monday, LME inventories dropped 6,325 tonnes to close at a 52-week low of 4.37 million tonnes.

According to a Reuters report, aluminum consumption in cars has a huge potential for growth in Europe as carmakers would prefer to opt for the lighter metal in order to cut fuel costs and emissions. Mark White, chief technical specialist at Jaguar Land Rover, said that currently the European car market consumes 130,000 tonnes of aluminum sheet which is foreseen to double or triple in the next five to 10 years.

Meanwhile, Indian aluminum maker Hindalco Industries recently revealed that China would use 18% (16.4 million tonnes) more aluminum in 2010 while the world consumption, excluding China, would be around 22.6 million tonnes.

Alcoa(AA) ended trading at $10.58 Monday, close to its resistance of $10.74 after which it is technically seen to be crossing $10.89. Its support lies at $10.37. Century Aluminum(CENX) closed at $9.09 with support and resistance at $8.88 and $9.25, respectively. Kaiser Aluminum(KALU) closed at $38.13 with support at $37.52 and resistance at $38.46.

Source:
http://www.thestreet.com/story/10811139/1/base-metals-rise-on-possible-china-moves.html?cm_ven=GOOGLEN
Nalco raises aluminium product prices by Rs 3,500/tn
Nalco has raised aluminium product prices by Rs 3,500 per tonne, reports CNBC-TV18, quoting NewsWire18. An official of the company said a weaker rupee is boosting local aluminium prices.

In an interview to CNBC-TV18 on June 22, BL Bagra, Director-Finance, Nalco, foresaw a marginal and gradual rise in prices. "We see aluminium prices moving back to USD 2,000 per tonne. The expected range for aluminium prices over the next 3-6 months is USD 2,000-2,200 per tonne."

Nalco, he stated, is targeting global acquisitions in the Far East region.

Source:
http://www.moneycontrol.com/news/business/nalco-raises-aluminium-product-prices-by-rs-3500tn_471050.html
Hindalco's aluminium production to dip this fiscal
NEW DELHI: Leading aluminium maker Hindalco Industries on Tuesday said production of the metal this fiscal will be 20,000 tonnes lower, as bad weather has affected operations of its Hirakud unit in Orissa.

"Hindalco Industries informs BSE that heavy rains and continuous bad weather, including lightning, have affected the operations of the Hirakud Aluminium Smelter of the company.

"... As a consequence of this unforeseen outage, Hirakud metal production is expected to be lower by around 20,000 tonnes for the current fiscal," the company said in a filing to the Bombay Stock Exchange.

The unit has an annual production capacity of 1.43 lakh tonnes per annum.

"A team of experts have now completed the assessment of the situation and have formulated an action plan for quick revival of operations, as well as certain remedial actions for the future," it said.

As per the action plan, the company said the unit will be re-started in a phased manner and the exercise is expected to be completed by end-August, 2010.

Further, Hindalco said, "Efforts are being made to cushion the impact of the loss by appropriate management action to optimise profitability across all other business segments of the company."

Source:
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Hindalcos-aluminium-production-to-dip-this-fiscal/articleshow/6192868.cms
National Aluminium Extends Deadline for First Wind Power Plant in India
National Aluminium Co., India’s second-biggest producer of the metal, gave companies an additional month to bid to build its first wind power project.

“We decided to extend the deadline to have more competitive bidding,” B.K. Das, chief manager of the auction, said by telephone today from Bhubaneswar in the eastern state of Orissa, where state-owned National Aluminium is based.

Companies interested in building and operating the 50- megawatt wind plant for 20 years now have until 3 p.m. local time on Aug. 20 to bid for the project, Das said, declining to say if any offers have been received. The previous deadline was today, he said.

The aluminum producer is expanding capacity to produce power to help feed its smelters and reduce the purchase of expensive electricity. National Aluminum boosted its power generation capacity by 13 percent to 1,080 megawatts after commissioning a 120-megawatt unit in the quarter ending June 30, according to a research note by Anand Rathi Securities on May 18.

Overseas and Indian companies may bid for the wind project and should be prepared to complete the plant within eight months of signing a letter of intent, Das said.

Source:
http://www.bloomberg.com/news/2010-07-20/national-aluminium-extends-deadline-for-first-wind-power-plant-in-india.html
Domestic Aluminum Production Soars 50% In H1
July 21 -- Domestic aluminum production jumped 49.19 percent year-on-year to 8.28 million tons in the first half of 2010, reports Yicai.com, citing statistics from the International Aluminum Institute (IAI).

On average, 45,800 tons of aluminum were produced daily.

In June, aluminum output inched up by 0.42 percent month-on-month and 38.39 percent year-on-year to 1.32 million tons, with daily production hitting 47,500 tons.

Global aluminum production increased 1.26 percent year-on-year to 11.89 million tons in the first half, with 65,700 tons produced every day.

Output decreased 2.87 percent month-on-month in June. Compared to June 2009, output increased 5.6 percent to two million tons. Daily global production reached 66,600 tons in June.

Shares of Aluminum Corporation of China (601600) dropped 0.53 percent to trade at 9.39 yuan at 11:30 am today.

Source: http://www.capitalvue.com/home/CE-news/inset/@10063/post/1210432
Current Aluminum Market Analysis Figures Indicate Impending Changes
For the past six month the aluminum market has been enduring a steady decline in profits which has left investors looking for a bottom that experts predict is in fact approaching. It was a decline in the U.S. economy, coupled with a recent spike in oil prices, along with energy costs as a whole that were the major factors that contributed to this trend.

Other factors such as global supplies have also figured in heavily as well. However; certain impending market trends are expected to bring relief to investors according to aluminum market analysis figures that have been recently compiled.

Market analysts that predict an early end to the current economic down turn in the second half of 2008 are indicating that they expect a rebound in aluminum demand at a time when global supplies should be significantly lower than they have been in the past.

One area of manufacturing that is expected to show an increasing demand for aluminum products is the domestic automotive industry, due to recently enacted government fuel efficiency standards that are scheduled to begin being implemented at the first of the year. Also, an economic turn around should spur an increase in consumer demand for aluminum as well.

While experts in aluminium market analysis debate the exact timing of the expected turnaround they do agree on several aspects where they do tend to find common ground. One of these areas of agreements is that continuing growth in Asian economies, particularly China’s which shows of slowing down which will contribute to overall global demand for aluminium.

Also, increasing inflation figures that continue to be seen in all Asian economies across the board indicate an impending upswing for aluminium investors. Exports in aluminium market analysis also agree that a quick end to the sub prime banking crisis can only help in improving the overall outlook for aluminium investors.

Source: http://www.infosplat.com/current-aluminum-market-analysis-figures-indicate-impending-changes/
Nalco eyes Afghanistan’s mining sector
State—owned aluminium maker Nalco may show interest in developing mines in Afghanistan, which is expected to invite global bids soon for exploration of mineral deposits estimated to be worth USD one trillion.

“Everybody should be keen on Afghanistan. We are right now waiting and watching the situation there. Once the tender is floated, things would become transparent and clear,” a senior Nalco official told PTI.

Nalco has joined industry peers like Vedanta Resources, Essar, Hindustan Copper which are eyeing mining assets in Afghanistan which is likely to seek global interest in the near future. “Afghanistan’s mining resources are yet to be explored. We are diversifying into other metals like copper, uranium, zinc,” he said. Another PSU Hindustan Copper has also expressed interest in bidding for mines in the country. Last month, Afghanistan Mines Minister Wahidullah Shahrani visited here and invited Indian companies, along with global majors like Rio Tinto and BHP Billiton, to develop the country’s resources. In its efforts to secure mining resources overseas, the aluminium PSU Nalco has already identified mineral assets in Chile, Namibia and Indonesia.

The Navratna company, listed and traded on the stock exchanges, is in the process of floating separate ventures in the foreign countries to buy out the reserves.

In Chile, the company has identified a bauxite mine; in Namibia, a copper mine and in Indonesia, a coal block.

For copper resources, Nalco would bid jointly with Hindustan Copper. For uranium assets overseas, the company may join hands with the Nuclear Power Corporation of India Ltd, with whom it already has a joint venture to set up nuclear power plants.

Nalco is in process of selecting advisers for such acquisitions. The adviser, likely to be selected by August, would be expected to help in scouting mineral reserves overseas for Nalco as well as completing such deals.

Nalco has cash reserves of Rs 4,400 crore to part fund its foreign ambitions. Besides, Nalco is scouting for resources in Mongolia, Ukraine, Uzbekistan, Senegal, Surinam, Zambia and Congo. At present, the aluminium maker produces 1.6 million tonnes alumina from its refineries in Orissa. It produced 3.6 lakh tonne aluminium last year.

Source: http://www.thehindu.com/business/companies/article523388.ece
Aluminium strengthens in futures trade, up by 0.48%
Aluminium futures prices edged higher by Rs 0.45 or 0.48 per cent at Rs 93.30 per kg today as speculators indulged in building up fresh positions, driven by gains in base metals at the London Metal Exchange amid good spot demand in the physical markets.

Aluminium for delivery in July contract also edged higher by Rs 0.45 or 0.48 per cent to Rs 93.30 per kg, with a turnover of 2 lots.

Likewise, the delivery in August contract also moved up by a similar margin to trade at Rs 94.35 per kg in a turnover of 1 lot.

Analysts said firming trend in copper and base metals at the London Metal Exchange as metals are trading at a discount to Chinese contracts and pick up in domestic demand at the physical markets influenced aluminium futures prices here.

Meanwhile, Aluminium gained 0.6 per cent to $1,990 a tonne at the London Metal Exchange.

Source:
http://www.business-standard.com/commodities/news/aluminium-strengthens-in-futures-tradeby-048/101904/&tp=on
Aluminium exports may rise by year-end
Falling LME inventories, yuan revaluation to be the likely triggers India’s aluminium exports are likely to pick up within the next two quarters due to falling inventories at the London Metal Exchange (LME) and revaluation of the Chinese yuan.

“Currency float by China will have a positive impact on exports, but may not affect growth substantially. However, aluminium demand in the international market is sound and will get support from the decreasing inventory of the metal at LME,” said A K Sharma, director (production), National Aluminium Company Ltd (Nalco).

Sharma, who also heads the Federation of Indian Mineral Industries (Fimi) panel for non-ferrous metals, said Nalco had been selling aluminium at a premium of close to $90 a tonne of late and expected the trend to continue.

Aluminium prices were hit due to the sovereign debt crisis in some European nations. Prices, which reached close to $2,316 a tonne for three-month delivery in April, had fallen 16 per cent to $1,930 per tonne in June. At present, aluminium for three-month delivery is around $2,000 per tonne.

“We expect prices to stabilise at the current level. They may touch $2,150 a tonne by December,” Sharma said.
Talking about the current inventory level of 4.3 million tonnes at LME, he said, “Most of the inventory has been tied up with financial deals, with less stock available for physical delivery. Also, the decreasing stock shows signs of demand growth from economies.”

Hindalco, in a recent briefing for analysts, said China would use 18 per cent more aluminium this year (16.407 million tonnes), while Indian consumption was expected to rise 18 per cent to 1.664 million tonnes. The domestic production of aluminium is estimated at three million tonnes a year. The report also pointed out that world consumption (excluding China’s) would be 22.592 million tonnes during the current financial year.

Referring to the Chinese factor, analysts said more than the currency revaluation, Chinese demand would drive growth in future. “Chinese currency revaluation will have a minimal impact on the Indian aluminium market, as it is still subdued. Rather, economic recovery in the European nations will drive demand growth,” said Biren Vakil, director, Paradigm Commodities.

Other industry experts echoed the sentiment. “Yuan revaluation will have a long-term impact on exports, as the Chinese authorities will revalue the currency in tranches,” said Goutam Koderi, research analyst at JRG Wealth Management, adding that the falling inventory level at LME showed signs of demand growth that were more fundamental and were expected to be sustained.

Koderi told Business Standard that the proposed floating of aluminium exchange-traded fund (ETF) would give support to the current price levels.

According to market news, UC Rusal is planning to launch an aluminium ETF next year, while Swiss commodity trader Glencore is also expected to come up with such a product.

Industry experts say aluminium ETFs have the capacity to absorb around 1.5 million tonnes LME stock, which in turn will push up aluminium prices.

Source: http://www.business-standard.com/india/news/aluminium-exports-may-rise-by-year-end/401712/
Aluminum consumption grows on thriving domestic demand - Abal
BNamericas cited Mr Mauro Moreno economy and statistics coordinator of Abal as saying that the growth in domestic demand for aluminum in Brazil has exceeded national aluminum association Abal's initial estimates, forcing an upward revision for total aluminum consumption in 2010.

Aluminum consumption in Brazil is expected to increase 24.7% to 1.26 million tonnes this year compared to 1.01 million tonnes in 2009. Abal had previously projected 21% growth to 1.2 million tonnes in 2010.

Mr Moreno said that the revised forecast is in line with projections for GDP. Brazil's GDP growth was estimated at 5% to 6% earlier this year but now the government is talking about an improvement of 7.3%.

According to Abal, In the Q1, aluminum consumption reached a record figure of 298,800t up 32.3% YoY. In the canning industry, for example, companies are already operating at full capacity and are having to import cans to supply clients. The canning and aluminum packaging sectors considerably contributed to the figures in Q1, but several other markets are also driving growth, such as sheets and structural shapes.

Mr Moreno said that the 46% growth in sheets consumption in the Q1 is outstanding. But we also have to take into account that the same quarter in 2009 was terrible. Since then, aluminum consumption has consistently improved every quarter and the sector has now recovered from 2009 losses and is returning to growth.

He said that in all markets, we are looking at growth compared with last year. In addition, there will be an improvement on 2008 which was a remarkable year for the industry.

(Sourced from Business News Americas)

Source:
http://www.steelguru.com/metals_news/Aluminum_consumption_grows_on_thriving_domestic_demand_-_Abal/155615.html
Power shortfall hits aluminium output at Nalco's smelter plant
The short supply of power from the captive power plant (CPP) of National Aluminium Company (Nalco) borne out of the coal crisis has hit the aluminium production at its smelter plant here.

The average production of aluminium at Nalco's smelter plant has fallen to 1100 tonnes from the normal figure of 1200 tonnes a dip of 8.33 per cent. This is because the smelter plant is getting an average of 740 MW of power per day as against the requirement of 810 MW to run the pot lines.

After the second phase expansion, Nalco is operating 927 out of 960 pots at its smelter plant, leaving the rest for maintenance, said a company official. Similarly, the navratna company is running eight out of the nine 120 MW units of its CPP, leaving one unit in the standby mode.

After keeping about 80 MW for its internal consumption, the CPP supplies 740 MW to the smelter complex.Nalco has recently added 240 pots at its smelter plant under its Phase-II expansion project. But it is yet to support this expansion with commensurate capacity addition in CPP. Only one 110 MW captive power unit was added in August last year but another 120 MW unit-the tenth CPP unit is yet to be commissioned.

The coal shortage has cast a shadow over the CPP, admitted a company source.Nalco needs a minimum of 20,000 tonnes of coal per day to run the ten units of its CPP but the current supply from all sources is limited to 16000-17000 tonnes per day. According to Nalco authorities, the company can enter into coal linkage agreement with Mahanadi Coalfields Limited (MCL) for the tenth unit only after the unit is fired.

Meanwhile, the Nalco authorities are making frantic efforts to source coal from various alternative sources. Besides drawing coal from its linked mine at the Talcher Coalfields under the command area of MCL, the company has planned to import 0.6 million tonnes of coal in the current fiscal.

It also sought 0.5 million tonnes of washed coal from the washeries through the e-auction mode. A total of 48,000 tonnes of coal have been procured by the aluminium major by the e-auction route.

Source:
http://sify.com/finance/power-shortfall-hits-aluminium-output-at-nalco-s-smelter-plant-news-news-khrb4ehgbga.html

Metals spurt on positive Chinese economic data
The Chinese economic data overnight was pretty positive overall, with solid Retail Sales, lower than expected inflation (both CPI and PPI) and stronger than expected Fixed Asset Investment.

GDP and IP figures were lower than expected, however counter intuitively perhaps, this suggests the Chinese governments measures to rein in spending have been successful, with the country perhaps now in a position to ease off and even loosen its purse strings over the balance of the year.

The base metals have rallied this morning, after coming under pressure during late trading on Wednesday. Solid Chinese data, a weaker dollar and better than expected earnings from JP Morgan have combined to provide a boost to the metals ahead of US trade. With much of the base metals complex towards the top of their recent ranges, prices are stalling, with a solid performance form the US equity markets needed if the metals are to find the impetus to break higher.

This afternoon is busy in terms of US data, with the release of the June PPI figures and the latest jobless data, followed by Industrial Production and Philadelphia Fed index. Significant departures from consensus expectations may well impact on the FX and equity markets, however, assuming the data comes out more or less in-line with consensus, market sentiment will likely be dictated by company earnings statements instead.

Copper traded sideways during Wednesday, albeit in quite a wide intraday range. A late sell-off emerged after the 5pm kerb close, with the red metal proceeding to open lower overnight, perhaps in expectation of weaker Chinese data. In the end those fears were largely unfounded, while a weaker dollar has also helped copper rally from its opening levels heading into the afternoon.

Elsewhere, LME inventories have continued to come under pressure, with on-warrant stocks falling by 3,975 mt today. As was the case on Wednesday, the main location for the activity has again been US warehouses, with a 3,775 mt jump in cancelled warrants in New Orleans accounting for most of the activity.

In other news, Chinese copper output surged to 422,000 mt in June, up 26% y-o-y to a new record. Given the spate of smelter shutdowns taking place over the next few months, it will b interesting to see if these kind of production levels can be maintained.

After a succession of inventory declines over the past few weeks, on-warrant aluminium LME inventory posted a net 11,200 mt gain. The location for the inflow was Long Beach, which saw 12,575 mt enter the warehouse. The inventory data had little impact on price however; with aluminium climbing comfortably back above $2,000.

Nickel has continued to see steady inventory declines, though the pace of those inventory draws does seem to have slowed a little. The background of falling LME inventories is lending support to prices, though nickel remains range bound and in need of an additional boost if prices are to break higher.

Source:
http://www.commodityonline.com/futures-trading/technical/Metals-spurt-on-positive-Chinese-economic-data-17501.html
Alcoa result bodes well for Alumina
THE US aluminium producer Alcoa has predicted the market surplus in world capacity for the lightweight metal will be whittled away by production cutbacks in China and increased demand fuelled by economic recovery.

The company - a partner with the Melbourne-based Alumina in the global AWAC alumina alliance - has also flagged that it is moving to shorter-term index pricing for alumina next year, breaking the practice of the intermediate product being priced on a longer-term basis and as a percentage of the metal price.

Alcoa said that up to 1.5 million tonnes of annual Chinese aluminium production was likely to come offline in the September quarter, in line with Beijing's directive to industry to rein in energy use.

That potential cut compares with Alcoa's estimate that there is a 1.2 million tonne capacity surplus in the industry.

The group's chairman and chief executive, Klaus Kleinfield, said energy was a ''scarce resource in China''.

He said last week's announcement by Beijing on its industry restructuring plans contained a message to aluminium smelters that power prices were set to rise, and some subsidies would be removed.

Mr Kleinfield was speaking on the release of Alcoa's June quarter results. Profits of $US137 million ($157 million) or US13¢ cents a share beat market expectations of US12¢ cents a share.

The result includes earnings from AWAC, the 60:40 joint venture with Alumina. After-tax operating income for alumina in the June quarter was $US94 million, an improvement from $US72 million in the March quarter.

The alumina earnings reported by Alcoa cannot be relied on as guide to what Alumina will report next month in its own financial report. But Goldman Sachs JBWere said the Alcoa result did show a strong improvement overall.

''The most important driver for Alumina remains the aluminium price (and linkage to alumina) and given the global surplus, we continue to see little reason for any improvement in the aluminium price near-term,'' the broker said.

While a 1.2 million tonne surplus for aluminium remains Alcoa's forecast, it believes the alumina market will be ''relatively balanced'', even if demand will be hit by the expected Chinese cutbacks in metal production. That was because alumina refinery cutbacks made during the financial crisis were even more drastic than those made by smelters.

Source: http://www.smh.com.au/business/alcoa-result-bodes-well-for-alumina-20100713-109g6.html
India’s Metals Future
It is widely assumed that metal production capacity in developing countries will continue to grow as demographics drives rising domestic demand. This assumption is what has fueled much of the faith in China’s never ending appetite for iron ore, coal, bauxite and non-ferrous metals like copper and nickel. India is seen as the lesser brother to China, driven by the same upward only long term trend as those 1 billion inhabitants, many of them living rural lifestyles gradually urbanize and a rising population seeks work and advancement.

An interesting analysis of India’s position appeared in a press release in advance of a New Materials research report from Business Monitor International. The June report looks both short and long term with, interestingly for us, a specific focus on the Indian steel and aluminum industries expressing growth prospects and some of the risks attached to their projections. Although broadly positive about the prospects for steel and aluminum production, saying producers will continue to find a healthy domestic market for new capacities coming online, they rightly also express concerns that a market imbalance may push prices down if they are unable to offload surpluses onto the international market; saying India will need to expand its export markets if it is to maximize capacity utilization.

In the first quarter ,India’s crude steel output was up 20% year-over-year to 16.1mn tons, reflecting the country’s steady return to form since the second half of 2009. The report believes the momentum to be sustainable, with monthly output remaining above 5mn tons for four successive months in March – the first time India exceeded this level was in December 2009. Expanding capacity meant that March represented a new high at 5.5mn tons.

Consumption is expected to grow at more than 10% over the next five years, driven by the construction, real estate and infrastructure sectors. In April 2010, consumption grew 9.6% y-o-y to 4.14mn tons and output grew just 5.3% to 4.9mn tons, leading to a 47.9% surge in imports to 660,000 tons. The automobile, household goods and capital goods industries also contributed substantially to the growth of the market. BMI forecasts average annual growth in finished steel consumption of 14% in 2010-2014. This is based on a forecasted average real GDP expansion of 7.6% per year over the coming 10 years, ultimately driven by the Indian consumer. To what extent India manages to continue with this level of growth remains to be seen, much will depend on continued moves to liberalize the domestic market, wider global growth helping steel exports and India’s ability to control inflation not now but a couple of years down the line. By 2014, based on BMI’s forecast model, finished steel consumption should reach 100mn tons, which is nearly twice the amount consumed in 2008 and only 6mn tons behind the US.

Government projections should be taken with a pinch of salt, a point BMI is not slow to point out. Steel minister Virbhadra Singh stated in May 2010 that India would double steel production to at least 120mn tons by 2011/12 even without the planned POSCO and ArcelorMittal projects which have been mired in land rights disputes. BMI forecasts 87.5mn tons output by 2012 but even this may be overly optimistic as new capacity has been slow to be added. The country may have 100 mn tons by 2014 and utilization at about 90% would see production at a still respectable 90 mn tons per year. Inevitably some sectors will see over capacity and some under resulting in exports and imports across the product range. Capacity utilization rates will depend on producers ability to secure exports in an increasingly protectionist world.

Although Indian aluminum producers enjoy some of the lowest costs of production in the world, growth in the industry could still be tough in the years ahead. Indian aluminum producers can produce aluminum at a cost of US$1,000-1,200 – half the cost of Chinese production – due to the country’s plentiful bauxite resources and subsidized power costs. As a result, India has been a significant exporter of primary metal to China as Chinese smelters have idled capacity again last year in the face of low metals prices. This is unlikely to be a long-term trend and the industry could face overcapacity if all three major producers continue to add capacity. The downstream market has limited ability to absorb excess primary metal as finishing capacity is only gradually being added so exports are the most likely outlet for excess metal if all the current projects come to fruition.

The road from developing to developed is never smooth so we should not be surprised to see countries like India go through periods of excess capacity resulting in a global increase in metal supply. A more consumption orientated China could provide a home for some of this capacity but a more likely outcome is the two rising powers will slug it out for business on the global stage.

Source: http://agmetalminer.com/2010/07/14/indias-metals-future/
Indian Aluminum Company Tracks Deliveries
Vedanta is using a UHF EPC Gen 2 RFID system to track the arrival and departure of contractors and employees at its smelter, as well as the weight of coal delivered to its power plant.

July 14, 2010—Vedanta Aluminium Ltd. (VAL), a subsidiary of metals and mining company Vedanta Resources PLC, is employing an EPC Gen 2 ultrahigh-frequency (UHF) RFID system to boost efficiency and prevent theft at its power plant and aluminum smelter in Jharsuguda, Orissa, in eastern India.

The system helps Vedanta protect itself from pilferage of coal or ore, the company reports, and makes the movement of the hundreds of contractors and employees who pass into and out of the facility every day more efficient. The EPC Gen 2 system replaces a previous RFID system in which ID cards with embedded RFID tags needed to be positioned extremely close to a reader, forcing drivers to stop their vehicles and hand their cards over to be read by the security staff.

The Vedanta site produces 500,000 tons of aluminum annually, but also includes a 1,215-megawatt power plant, for which contractors deliver truckloads of coal. The identities of the driver and his or her truck must be confirmed before each vehicle is authorized to enter the facility. Then, the truck must be weighed twice—once upon arriving and again when leaving—to determine how much coal was delivered.

The company sought a solution that would allow the trucks and employees to travel through the gate quickly without creating queues at security. It also wanted to be able to provide real-time data regarding which individuals were at the site at any particular time, as well as the amount of coal they delivered.

With Vedanta's previous RFID system, the tags embedded in the ID cards were difficult to read, says R.K. Shantosh, the assistant manager of Vedanta's IT division, and all data—such as driver and company information—was stored on the card's tag itself, rather than in a back-end system. As such, Shantosh explains, the system did not provide the company's management with vehicle arrival and departure data. So in March of this year, he says, the firm contracted for a new RFID solution, which it began installing in April.

On average, 3,000 trucks enter the area each day, bringing coal and bauxite. Employees also enter the complex on a daily basis. In the first phase of deploying the new system, Vedanta mounted RFID tags on the windshields of cars and trucks, in order to track employees and coal deliveries en route to the power plant.

Because of the highly metallic environment—including the presence of metal in the windshield glass itself, to make the windshield more rugged—obtaining a sufficient read range for each tag to be interrogated by a reader mounted at a gate was especially challenging. A read range of up to 50 feet from cars traveling up to 21 miles per hour was accomplished by customizing the reader, which has a built-in antenna. The transmission between the antenna and the interrogator is digital, rather than the traditional analog signal through a cable, the company explains, thereby resulting in a higher-quality transmission.

The reader, powered with Power Over Ethernet (PoE), captures the unique ID number of each vehicle's tag, and forwards that information to the software system integrated with the power plant's back-end SQL database. The system also includes an Apache Tomcat open-source Web server so that Vedanta can control the reader remotely, and can reboot it if necessary by turning off its power and resetting it.

Within the RFID software, the ID number of each windshield tag is linked with the name of the contractor company, vehicle description and driver, and that data is then sent to an LED screen display located at the site's entrance and exit gates. When a vehicle arrives at the gate, the security officer manning that location need only look at the screen and compare the data displayed, including a picture of the authorized driver, with the actual vehicle and driver at the gate. That individual is then either allowed or denied entrance.

The second phase of the deployment, currently undergoing installation, will incorporate the weighing of cargo to ensure the accuracy of invoices from, and payments to, contractors. Vedanta installed a weighbridge that links to the RFID portal through which each vehicle must pass. The scale measures the gross weight as the truck arrives, and then the tare weight as it departs, and links those weights with the ID number on the vehicle's windshield tag. In this way, Vedanta indicates, the company can determine the size of the load, and ensure that the entire amount was dumped at the site.

The final phase will incorporate an image capture of the license plate number of each vehicle entering the facility, which will also be linked to the RFID tag's ID number. This will add another layer of security to ensure the correct truck has arrived. According to the company, the date for the addition of that functionality has yet to be determined.
Since the first phase of the deployment was installed, Vedanta reports, the system has reduced the entrance time for contractors from an average of 5 to 10 minutes, down to 20 to 25 seconds. By making the entrance gate and weighing waits shorter, the firm expects to see a significant reduction in the vehicles' fuel consumption.

"We've been using the system for three months, and it's been very smooth," Shantosh states. "We're able to get real-time data about the number of trucks inside [the facility], and we can plan our traffic in the future accordingly."

Source:
http://www.rfidjournal.com/article/articleview/7722

http://www.rfidjournal.com/article/view/7722/2
LME Prices in $ / metric ton
Friday PM Kerb
  Buy Sell Stock
Aluminium 1,970.00 1,973.00 4,446,400
Aluminium Alloy 1,856.00 1,856.00 71,560
Copper 6,825.00 6,829.00 454,250
Lead 1,820.00 1,823.00 188,800
Nickel 19,930.00 19,931.00 126,312
Tin 18,145.00 18,149.00 18,725
Zinc 1,845.00 1,847.00 616,550
Vedanta Aluminium officials visit Jharsuguda
It is reported that three members of the Corporate Social Responsibility Advisory Board of Vedanta Aluminium Ltd Dr AB Ota director of SC and ST Research Centre, Mr Sahadev Sahoo former chief secretary and Ms Namita Panda chairperson of State Women Commission paid a visit to the Jharsuguda plant site of the company on May 2, 2010.

Sources said that the purpose of the visit was to evaluate the overall progress of the smelter and power plants of Vedanta Aluminium and the ongoing CSR initiative of the company.

It said that during the visit the team stepped into the Jharsuguda Engineering School where the people from the project affected villages are being imparted training by VAL on different technical skills like plumbing, carpentry, house wiring and other profession-oriented skills. The members interacted with the people and applauded the efforts of the VAL in imparting the skill-building as well as skill-enhancing training to those people.

It may be mentioned that Vedanta has set up a smelter with a production capacity of 0.5 tonnes per annum. It has also a long term objective to come out with a projected production of 1.75 tonnes per annum by 2012 which is expected to make the company the number one aluminium producer in the country. Besides it has already generated 675 MW of captive power and has a target to produce 3615 MW power in total which is expected to make it as the largest power generating company from a single location

(Sourced from Statesman News Service)

Source: http://www.indiacsr.in/article.php?article_id=640
Nalco eyes assets in Namibia, Indonesia
Bhubaneswar: Aluminium giant, National Aluminium (Nalco), which has set its eyes on mineral resources world over, is soon going to appoint a consultant firm for its overseas ventures.

“We have floated a global tender to engage a consultant to advise on acquisition of mineral assets outside the country,” Nalco director finance, BL Bagra, told FE. He also added that many merchant bankers and investments bankers are showing interest in the tender, which is going to be closed in the first week of August.

“As part of Nalco’s new policy of diversifying from a single commodity aluminium company to a multi-commodity corporation, the company is now looking for assets outside the country,” Bagra said.

Source: http://www.financialexpress.com/news/Nalco-eyes-assets-in-Namibia--Indonesia/645475/
Vedanta Aluminium Supports Orissa Power Lifter for World Championship
Bhawanipatna: Vedanta Aluminium Limited, Lanjigarh has sponsored Kalahandi based Power lifter Tarandeep Singh for participation in World Junior Power Lifting Championship to be held at Czech Republic. A cheque of mount Rs. 25,000/- thousands was handed over to Mr. Singh by Mr. Basant Kumar Pradhan, District Information and Public Relations Officer, Kalahandi today.

Tarandeep has been selected for the world championship during selection camp held at Ranchi in June, 2010. He had also secured fourth position in the All India Open Power Lifting Championship, held at Guwahati during January, 2010. He is one of the two Power-lifters from Orissa, selected for the world championship. He thanked Vedanta Aluminium Limited for sponsoring his participation in the international competition. “This is a great help to me for realizing my dream,” said Tarandeep.

Wishing all success for the young athlete, Dr. Mukesh Kumar, Chief Operating Officer of Vedanta Aluminium Limited said, “Tarandeep has all potential to win medals in the world Championship and will bring glory to Kalahandi”. Mr. Basant Kumar Pradhan also wished success for Tarandeep.

Source: http://www.orissadiary.com/ShowSportsNews.asp?id=19718
Niyamgiri: Team studies bauxite mining impact
BHAWANIPATNA: To study the impact of proposed bauxite mining by Vedanta Aluminium Limited at Niyamgiri, an expert committee led by MC Saxena toured some of the Kutia Kondh and Dongria Kondh inhabited villages. The study, being undertaken at the direction of the Ministry of Forest and Environment, is expected to decide the fate of Vedanta.

The report of Saxena will concentrate on the consequences of mining on environment, forest and tribal life. During his tour, Saxena interacted with the villagers to learn about their economic condition, hopes and apprehensions, ‘if any’, regarding mining and the steps taken by VAL for their welfare.

He visited Bandhguda, Rengopali, Trilochanpur and Phuldumer villages. At Phuldumer, a primitive Dongria Kondh inhabited village in the foothills of Niyamgiri, he inquired from the villagers about their forest rights and status of their awareness of other provisions of the Forest Act. He also visited the leaf plate making unit, solar light, childcare centre and pipe water supply scheme floated by VAL in the village under its CSR initiative.

In Bangoguda and Regopali villages, adjacent to the plant, villagers expressed apprehensions about their future due to proximity and demanded displacement and rehabilitation facility. Saxena today held a meeting with environment activists and eminent citizens on the issue.

Among others, Lok Sabha member Bhakta Das and Sidhartha Naik, who attended on behalf of Green Kalahandi, former State ministers Kiran Singh Deo and Balabhadra Majhi for BJD, former Lok Sabha member Subas Naik and members of advocates forum, NGOs Sewa, Udyogini and GARD interacted with him and presented memoranda.

Source: http://expressbuzz.com/states/orissa/niyamgiri-team-studies-bauxite-mining-impact/188352.html
Superior Industries Acquires Equity Interest
In India-based Wheel Manufacturer
VAN NUYS, CALIFORNIA -- June 29, 2010 -- Superior Industries International, Inc. (NYSE:SUP) today announced it has acquired 8.7% of the outstanding shares of privately-owned SYNERGIES Castings Limited, an aluminum wheel manufacturer in Visakhapatnam, India. Concurrently, Superior entered into a definitive agreement to make additional equity investments in SYNERGIES up to a total of approximately 26% of SYNERGIES’ total issued equity by December 31, 2010, subject to certain conditions.

"We believe this is an excellent long-term investment opportunity, given the dynamic and growing automotive market in India,” said Steven J. Borick, Chairman, Chief Executive Officer and President. “SYNERGIES is the premier player in the region and an accredited OEM aluminum wheel manufacturer. The company has existing contracts with Toyota, General Motors USA and Chrysler USA, among other major automotive manufacturers."

According to CSM Worldwide, an automotive market forecasting firm, light vehicle sales in India are expected to grow nearly 14% in calendar year 2011.

About SYNERGIES Castings Limited.
SYNERGIES is India’s first global scale, world-class aluminum alloy wheel manufacturing company. The company harnesses the power of cutting edge Low Pressure Die Casting (LPDC) and customized Copper-Nickel-Chrome electroplating technology to manufacture and finish aluminum alloy wheels and other aluminum cast components.

About Superior Industries
Superior supplies aluminum wheels to Ford, General Motors, Chrysler, BMW, Mitsubishi, Nissan, Subaru, Toyota, and Volkswagen. For more information, visit www.supind.com.

Source : http://www.supind.com/news/India.aspx
DJ Nalco Sells Aluminum Ingots At $92.50/Ton Premium To LME – Executive
India's National Aluminium Co. (532234.BY) sold 6,000 metric tons of aluminum ingots at a premium of $92.50 a ton to the cash price on the London Metal Exchange, said a senior executive at the company Tuesday.

The ingots will be shipped to STX Corp. (011810.SE) in batches of 1,000 tons, starting from August, said the executive who declined to be named.

State-run Nalco received nine bids for the tender, the executive added.

In April, Nalco had sold 9,000 tons of aluminum ingots at a premium of $82.28/ton. It had received nine bids for this previous tender.

Source:
http://www.tradingmarkets.com/news/stock-alert/syghf_dj-nalco-sells-aluminum-ingots-at-92-50/ton-premium-to-lme-executive-1023030.html

Aluminium futures up marginally on good spot demand
In a range-bound trading, aluminium futures gained Rs 0.25, or 0.27 per cent, at Rs 93.45 per kg today on the back of better demand at the spot market.



At the Multi Commodity Exchange platform, aluminium for delivery in August contract traded Rs 0.25, or 0.27 per cent, higher at Rs 93.45 per kg, with a business volume of one lot.

The metal for delivery in July contract also moved up by Rs 0.10, or 0.11 per cent, to Rs 92.35 per kg, with a turnover of 80 lots.

Market analysts said good demand at domestic markets, supported the rise in aluminium prices at futures market here.

Source:
http://www.business-standard.com/india/news/aluminium-futuresmarginallygood-spot-demand/99448/on

Aluminium recycling continues to rise

luminium can recycling rate in the UK increased by four per cent last year, it has been revealed. Recycling trade body Alupro found that 55 per cent of all aluminium cans were recycled, compared to 51 per cent in 2008, reports letsrecycle.com.

The news will be warmly received by the industry as the continued growth in recycling will spark more demand for machinery.

Alupro chief executive Rick Hindley claimed the figures are very encouraging but said rates have to increase further in order to meet government targets.

He said: “We have to recognise we work in a system that isn’t perfectly suited to our needs, so we have set ourselves a 65 per cent target by 2020.”

Overall recycling packaging rates have risen from less than two per cent in 1989 to 41 per cent in 2009.

“Aluminium packaging recycling has come a long way in the last 21 years,” Mr Hindley added.

Source: http://www.guttridge.co.uk/news/2010/07/05/aluminium-recycling-continues-to-rise/
Hindalco Industries good for long-term investment
Hindalco Industries, a formidable player in non-ferrous segment, has seen its stock surging to a record high of Rs 184 in the first week of April 10. Since then, however, it has plunged by around 22% in tandem with its metal peers. The sharp fall can be attributed to the concerns of a crisis in the European economy and a weaker-than-expected recovery in the US trade. However, investors need not worry as long-term growth parameters look intact for Hindalco.

Business: The company has presence in two fast-growing non-ferrous metal segments - aluminum and copper. It is among the top five aluminium producers in the world. With its subsidiaries, such as Novelis and Aditya Birla Minerals, the company is able to diversify its portfolio giving natural hedge against global business volatility.
The company focuses more on process efficiency rather than sticking to volume growth. This has helped Hindalco in achieving better margins in the case of Novelis, which the company acquired in 2007. Novelis is likely to sustain strong operating performance as it is a dominant player in the metal cans business. The segment accounts for 58% of Novelis' product mix.

Sales of FMCG companies are poised to increase and so do profits of Novelis given its dominance in the cans business. Further, demand for FMCG products is somewhat insulated from the industry cycle. This shields Novelis from concerns of slowing demand in the commodity segment. Outlook for other applications, such as automobiles, is also positive.

The company is investing heavily on both greenfield and brownfield projects. These projects will give Hindalco a much-needed increased capacity to meet growing industry demand. Management foresees inorganic route for growing its downstream aluminium business and aims to achieve 40% self-sufficiency of copper for its smelter in India.

Outlook: Long-term growth outlook for Hindalco seems positive. Operating profit before depreciation is expected to increase over and above the impressive growth during the quarter ended March 2010 on account of cost savings and high capacity utilisation. Given its capacity expansion, Hindalco is well positioned to take advantage of higher demand in emerging markets and South America. Further, China's decision to allow its currency to appreciate can indirectly benefit Hindalco.

An appreciating Yuan can lead to higher Chinese import of commodities, which will in turn support prices of both copper and aluminium. This could lead to higher margins for Hindalco in the coming quarters. Also, Australian government's decision to reconsider its mining tax can further add to Hindalco's revenues as its subsidiary Aditya Birla Mineral has copper mines in Australia.

Financials: The company reported sales (standalone) of Rs 19,536 crore, a growth of 7%, in FY10. Net profit was down 14% to Rs 1,916 crore, mainly due to higher coal cost and lower aluminium and copper prices in international markets. On the consolidated basis, net profit was Rs 3,925 crore against Rs 484 crore a year ago. The surge was mainly due to the unrealised derivative gain of about $578 million (approximately Rs 2,700 crore) and improved margins at Novelis.

Valuations: Hindalco's stock price has fallen on weak European demand and volatility in global metal prices. If we compare Hindalco with its peers such as Nalco, its subsidiary Novelis is the differentiating factor. Beverage business can give steady volume growth to Hindalco. In the case of players such as Nalco, margins would largely depend on aluminium prices. As of now, Hindalco's stock is trading at a price-to-earning (P/E) ratio of 14. The company's profitability in the next two years is expected to increase significantly because of lower cost of operation, higher volume and increase in margins. Investors can look for the stock for a long-term prospective.
Aluminium and Health

The light metal in the environment and everyday life Aluminium is the most common element in the earth’s crust. It is part of many rocks and soils and is present in the surface and ground water as well as in air-borne dust particles. Through the network of roots, most plants absorb aluminium. Some plant species, like the tea bush for instance, take up larger amounts.

The food industry often uses aluminium as an additive. Aluminium silicate is an ingredient of the food colouring E 173. Sugar icing (E 173) contains a silvery colourant, as well as drying powder (E 599) which prevent slices of cheese from sticking together, and baking agent (E 541). Aluminium is added to coffee whitener, table salt and spices so as to avoid agglutination.

Moreover, aluminium makes its way into deodorants and is used as an anti-acid in medicines administered to gastric ulcer patients, since aluminium compounds are particularly effective at neutralising stomach acid. Also, aluminium is in toothpaste, desinfectants and vaccine vehicles.

Absorption by the body
Aluminium enters the human organism through three channels: nutrition, respiration and the skin. On average, the body holds around 35-50 mg of aluminium in the bones and tissue. Depending on the diet, a normal adult ingests three to twelve milligrams per day when no aluminium-containing medicines are taken. By way of the gastrointestinal tract only a minute amount of the aluminium present in food is absorbed. A healthy organism eliminates this dose through the kidneys.

According to the EAA, researchers fed probands 100 times the usual aluminium concentration. No adverse health effects were registered. However, since the absorbed aluminium accumulates in the body, the World Health Organization (WHO) in 2006 recommended a weekly upper limit of one milligram of aluminium per kilogram of bodyweight. This amount is probably exceeded by a significant part of the European population.

Aluminium and illnesses
Like other metals, aluminium has been linked to neurodegenerative disorders. In high doses it may pass through the blood-cerebral barrier and cause nerve damage. Following the discovery of higher than usual concentrations of aluminium in the brain of dead Alzheimer’s patients, the light metal has been frequently associated with this disease pattern.

Yet, numerous studies have failed to prove any causality between the intake of aluminium and Alzheimer’s. The exact reason for the toxicity of aluminium is not yet known. But several indications seem to suggest that aluminium compounds promote the formation of free radicals which may play a key role in destroying nerve cells.

Risk factor aluminium?
Although aluminium is mainly ingested, utensils like cooking utensils, food packagings or cosmetics pose an additional threat. The German Bundesinstitut für Risikobewertung (BfR) analysed whether these sources can be viewed as harmless. Compared to the amount ingested or swallowed through medicines, the risk they pose is well below the unproblematic levels established by the WHO.

The BfR, therefore, sees no correlation between aluminium and Alzheimer’s. In its report on the safety of ingesting aluminium, the European Food Safety Authority (efsa) illustrated in its 2008 report that aluminium neither has any cancerogenic potential nor can it be seen as a risk factor for the development of Alzheimer in relevant nutritional doses. The BfR however concedes that aluminium might act as a co-factor in the formation of neuropathalogical damages.

Based on the increased dissolubility of aluminium under the influence of acids, the BfR advises to use aluminium-containing items appropriately so as to avoid an unnecessary ingestion. Acidic food such as tomato sauce and apple puree are not to be stored or prepared in repositories made from aluminium, because doing so would significantly raise the concentration of aluminium.

There hence remains a suspicion that the light metal could be noxious. The link between aluminium and various disseases will continue to be the subject of discussion and controversy.

safty awards As part of argillites aluminium made its way into the first cooking cooking vessels. Pots and pans were the first commercial applications of aluminium to be manufactured on a large scale. Camping dishes are particularly lightweight.
safty awards Aluminium hydroxide is applied in antiperspirants as it constricts the pores in the human skin. Some users, however, experience skin rashes and allergic reactions.
 
safty awards Aluminium sulfate is used around the world as a flocculating agent for the purification of drinking water. Less than 01. mg of aluminium are ingested this way on a daily basis.
 
safty awards Aluminium deodorants are suspected of contributing to the development of breast cancer. British researchers have found elevated concentrations of aluminium in the breast of cancer patients. The largest concentrations were detected close to the axle.
Source: http://www.alu-scout.com/en/perl/enc/enc.pl?todo=show_paragraph&ppk=1812
Hindalco: A new perspective
Changing product profile and increased operational scope will see the company get better valuation.

It was easy to track Hindalco’s share price earlier. All you needed to do was follow trends on the London Metal Exchange (LME), and you would have found that the Hindalco stock would replicate the same. But this is set to change now as the company rises up on the value chain and becomes an integrated aluminium products player — something it envisaged to be when it acquired Novelis.

Around 60 per cent of Hindalco’s earnings are now sourced from Novelis, which is not linked to aluminium prices. Moreover, even Novelis has reduced the cyclical element from its operations and is a dominant global player in the cans business, which is not caught in cyclical trends. The cans business accounts for 58 per cent of the product mix, from the earlier 45 per cent.

Moreover, Novelis has turned the corner and is likely to expand capacity by 10 per cent, thereby generating around Rs 4,500 crore in operating profits, reckon analysts. Already, its operating profit margins have improved 120 basis points on a sequential basis to 15.9 per cent. The company just about got some help with LME prices remaining steady, and the improvement in copper margins from Rs 900 a tonne in the December 2009 quarter to Rs 2,000 a tonne in the March quarter provided some succour too.

Hindalco’s greenfield and brownfield expansion plans are also said to be on track. The 1.5-million-tonne Utkal alumina refinery as well as the Mahan aluminium project are to be completed by the second quarter of 2011-12. Essentially, Hindalco will triple its aluminium facilities in the next three years and it already has the reputation of of the low-cost manufacturers in the world. It has achieved financial closure for the project with Rs 5,600 crore so far — analysts estimate around Rs 1,700 crore has been spent and Rs 2,400 crore of expansion spending is slated for the current fiscal. With more visibility coming on stream on the Utkal project, the company can expect better valuations.

Source: http://www.business-standard.com/india/news/hindalconew-perspective/399090/
See Aluminium Prices Moving Back to $2,000/tn: Nalco

The big trigger for the global equity and commodity markets yesterday was China's plans to make its exchange rate more flexible. The greatest impact could be seen on aluminium prices. China dominates the top half of the industry cost curve for aluminium.

Indian commodity producers are set to gain the most as the cost of production for Chinese producers will go up due to the rupee appreciation. But the cost for Indian producers will remain the same, thus increased margins and higher profits.

Commenting on the same, BL Bagra, Director-Finance, Nalco, said markets will not over-react to the Chinese move. He doesn’t see a major impact on aluminium prices in the near-term. "Metal prices are largely guided by high inventory. We see a marginal rise in prices and that too in a gradual manner."

Currently, aluminium prices are trading at USD 1,960 per tonne. Bagra sees aluminium prices moving back to USD 2,000 per tonne. "The expected range for aluminium prices over the next 3-6 months is USD 2,000-2,200 per tonne."

Nalco, he stated, is targeting global acquisitions in the Far East region.

NOVELIS PLANS US$300 MILLION EXPANSION
In a move that could continue turnaround of the company Buckhead-based international aluminium producer Novelis plans to invest US$300 million to expand its aluminium rolling operations in Brazil. This is a reflection of the company’s strengthened financial position, enabling it to make significant strategic investments to support future growth. The company called the project “the largest single capital investment Novelis has made since the company was launched five years ago” Novelis was spun off as an independent public company in 2005 by Alcan Inc., the Canadian aluminium producer, and its headquarters were established in Atlanta. The company struggled with financial reporting issues and other problems, and in 207 was bought by Hindalco Industries Ltd Novelis, which had US$8.7 billion in revenue in fiscal year 2010, has 11,600 employees, including more than 100 in Atlanta, and operates in 11 countries. It is the world’s largest producer of rolled aluminium and the largest aluminium recycler. Much of its business is in aluminium beverage cans. The company reported net income of US$405 million for fiscal year 2010, compared to a net loss of US$1.9 billion for the same period a year ago.

Source: Metalworld June 2010 Vol9 No. 06
Nalco may shift site of its 2nd aluminium project in Orissa
Looking for new locations in Sambalpur, Sundergarh, Bolangir for Rs 16,000 cr aluminium, power complex.

The endorsement of capacity expansion proposals of Vedanta Aluminium Ltd (VAL) and Hindalco by the single window clearance authority of the Orissa government has virtually sealed the fate of the Rs 16,000 crore smelter cum power complex (SPC) proposed by National Aluminium Company (Nalco) at Jharsuguda.
 
BSE|NSE Price
 

VAL and Hindalco, who have their smelter cum power projects located at Jharsuguda, have been permitted to scale up the aluminum smelting capacities of their proposed ventures from 0.25 million tonnes to 1.6 million tonnes and from 0.146 million tonnes to 0.36 million tonnes per annum respectively.

The single window authority has recommended their cases for the final approval of the high level clearance authority headed by chief minister Naveen Patnaik yesterday.

With the state government earlier entered into a pact with a joint venture firm promoted by L & T and Dubal for a 0.3 million tonne aluminium plant also at Jharsuguda, the total aluminium capacity proposed by various companies, excluding Nalco, in the Jharsuguda region is now pegged at 2.2 million tonne.

However, the Nagpur based National Environment Engineering Research Institute (NEERI), which was conducting a carrying capacity study for the Jharsuguda region in view of the pollution threat there arising out of rush of investment proposals in the field of aluminium, steel and power sectors, in its interim report has capped the total aluminium capacities to be permitted in the region at 2 million tonnes.

Hence, the scope of Nalco setting up its project, comprising a 0.5 million tonnes per annum aluminium smelter and a 1260 Mw captive power plant (CPP), at Jharsuguda appears very bleak, pointed out a company official.
Nalco had written to the state government pleading that if the government did not allow massive capacity expansion proposed by some of the private players, then Nalco can put up the project at Jharsuguda while maintaining the overall cap of 2 million tonne for the region. But its plea has been ignored by the single window authority.

Meanwhile, the public sector aluminium major has already started looking for alternative sites for its project. It recently sent teams to Sundergarh, Sambalpur and Bolangir to scout for new location. The teams have collected datas on availability of land, water sources and transportation facility etc and these are being assimilated. “In case of re-location, we have to see that the viability of the project is not affected”, said B.L. Bagra, director, finance, Nalco.

The company had chosen Jharsuguda as the possible site for the plant as it was in the vicinity of the IB valley coalfields. This apart, given the backdrop of problems in land acquisition for industrial units in Orissa, the land required for the project was expected to be trouble-free as most part of the identified patch was government and barren land.

The company fears, moving the project to another location will mean going farther from the coal mines which will push up the cost of transportation of coal, a key raw material.

Ironically, among all companies who proposed to set up aluminium smelter at Jharsuguda, Nalco was better equipped to implement it successfully as the company has surplus alumina to feed the project.

While Vedanta’s alumina plant at Lanjigarh is facing environment issues, Hindalco and L & T- Dubal are yet to set up their alumina projects in the state. In contrast, Nalco’s Damanjodi refinery, which is undergoing expansion, is expected to have one million tonne of surplus alumina which can be easily converted to produce 0.5 million tonnes of aluminium, sources said.

Orissa gives green signal for Vedanta’s expansion plans

The Orissa government Tuesday the green signal for capacity expansion of Vedanta Aluminium’s alumina refinery at Lanjigarh to 6 million tonnes per annum, besides an increase in the throughput of its Jharsuguda of its smelter to 1.6 mtpa, an official source said.

The company will invest Rs 37,440 crore in the two projects, the source said.

The approval was given at a meeting of the State Level Single Window Authority (SLSWA) chaired by Chief Secretary T K Mishra here.

The approval will now be referred to the High Level Clearance Authority (HLCA) chaired by Chief Minister Naveen Patnaik, said a senior official of the industries department.

VAL, which operates a 1-mtpa capacity alumina refinery at Lanjigarh, in Kalahandi district, proposed to expand the plant to 6 mtpa, he said.

This apart, VAL’s proposal to expand its smelter plant at Jharsuguda from 0.25 mtpa to 1.6 mtpa also received the SLSWA’s nod.

The company’s proposal to expand its captive plant from 650 MW to 1350 MW also cleared by the SLSWA.

The SLSWA also cleared a proposal from Hindalco to expand its smelter capacity from 1.6 mtpa to 3.6 mtpa and its captive power plant from 367 MW to 967 MW at an investment of Rs 4,430 crore.

In addition, the SLSWA gave clearance to seven other mega-projects, including a proposal from Rohit Ferro Tech to manufacture stainless steel.

Rohit Ferro Tech, which has been manufacturing 1 lakh tonnes of ferro alloys at its Kalinga Nagar plant, proposed to establish facilities to produce 6 lakh tonnes of stainless steel at an investment of Rs 2,100 crore.

Other proposals which got SLSWA’s nod included the Bhushan Steels’ and Medium Industries park at Dhenkanal with an investment of Rs 3,000 crore, Ramakrushna Power Limited’s 120-MW capacity power project with an investment of Rs 525 crore, SPI Port’s 1,320-MW power plant with an investment of Rs 6,609 crore and two other power plants.

Orissa occupies top place in India's aluminium sector: Survey
BHUBANESWAR: Mineral rich Orissa occupies the first place in the country in aluminium sector, both in terms of production capacity and actual output, according to the economic survey report for 2009-10.

The report, placed in the state assembly, claimed that Orissa's position in aluminium sector went up after Vedanta Aluminium Ltd (VAL) started production in addition to Nalco.

While the Nalco's present refinery capacity was 1.57 mtpa, it would soon be increased to 2.1 mtpa after completion of expansion.

Similarly, the Navaratna company's smelter capacity would be increased to .46 mtpa from the existing .34 mtpa.

The state government's State Level Single Window Authority (SLSWA) meeting yesterday gave the green signal to VAL's expansion proposals which planned to increase capacity of its refinery to 6 mtpa from the existing 1 mtpa.

The private company has also received the SLSWA's nod for expanding its smelter capacity from 0.25 mtpa to 1.6mtpa.

"Of the four major aluminium production units in India, two are located in Orissa," the report said.

In January 2010, total aluminium production in the state was 48 per cent of total production by all four big aluminium plants combined.

Stating that most large-scale industries in Orissa were mineral based, the report said that the state retained 10 per cent of steel production capacity of the country, while it has 25 per cent of the iron ore reserves.

"There are new potential entrants such as Vedanta, Jindal, Posco and Essar into this sector in Orissa," the report said adding that steel producing capacity of the state would improve substantially if MoUs materialised.

While mining activities contributed 7 per cent of the gross state domestic product (GSDP) of the state, it seemed poised for a higher growth rate, the report said.

"In total value of mineral output, Orissa ranks No-1 in the country and its share is increasing," the report said, adding that export of minerals and ores from the state were increasing, but 'not steadily'.

Though it was growing, the report said direct employment in the mining sector was declining over the time. "It may be partly due to increased mechanization of extraction activity."

Source: The Times of India , Bhubaneswar
LME Prices in $ / metric ton
Friday PM Kerb
  Buy Sell Stock
Aluminium 1,900.00 1,901.00 4,496,725
Aluminium Alloy 1,842.00 1,844.00 71,400
Copper 6,350.00 6,352.00 465,000
Lead 1,652.00 1,656.00 192,825
Nickel 18,895.00 18,897.00 133,794
Tin 16,445.00 16.448.00 20,910
Zinc 1,700.00 1,702.00 617,125
Source: Minerals & Metals Review Weekly, June 14, 2010

Apple Revives the Mac Mini, Now in Aluminium With HDMI

Tags: apple line, Apple Revives, box (4), Mac (33), Mac Mini (3), Mac MiniContinue, nbsp (1,430), Read (1,232), rest (2), tv gallery

Hey, remember this thing called the Mac Mini? Apparently Apple thought there was still some demand for its only monitor-less, stand-alone box, and decided to give it a 2010 makeover with the now-standard aluminum unibody possessed by the rest of the Mac family. The main reason that the old Mac Mini was such a total suck piece of hardware was that, while relatively inexpensive compared to the rest of the Apple line, you had to buy either an outrageously expensive Cinema Display or third-party monitor. (But, pshaw, we all know that you can’t mix and match with Apple’s aesthetic.) Plus, the wee box had no built-in connectivity to your TV.

Source: http://thewebdawn.net/sm/2010/06/18/apple-revives-the-mac-mini-now-in-aluminium-with-hdmi/

This is the world’s most expensive model car. The Bugatti Veyron Diamon Ltd is on sale for two million pounds – twice as much as the real thing. Liverpool-based designer Stuart Hughes took two months to create the intricate 1:18 scale model in partnership with Swiss luxury model car maker Robert Gulpen. Weighing in at 7kg, it has been created with platinum, solid 24ct gold, and a 7.2ct single cut flawless diamond on its front grill. The 10 inch car also boats functional steering and a highly detailed engine. In a limited edition of three, owners also get a certification of authenticity, an aluminium case and photo documentation of the manufacturing process.

 
 
 
  Nalco to rope in partners for Indonesia project  
  The public sector National Aluminium Company (Nalco) is set to finalise the terms of its joint venture (JV) agreement with two foreign partners for a Rs 18,000 crore smelter and power plant project in Indonesia within next couple of months.

The company intends to tie up with Pt Antam, a government owned mining company of Indonesia and MEC (Middle East Coal) promoted by Ras Al Khaimah Minerals and Metals Investment of UAE for the project.

The Indonesian project, billed as a key growth driver for Nalco, is part of the company’s Rs 40,000 crore expansion plan incorporated in its Vision 2020 document.

The project comprises of setting up of a 0.5 million tone per annum aluminium smelter and 1260 Mw captive power plant (CPP) over 6,000 acres of land in East Kalimantan province of Indonesia.

Through both the foreign partners are keen to have 40 per cent shares each, Nalco, with its role as the lead promoter, will hold at least 50 per cent stake in the project and can only allow them less than 50 per cent shares combinedly, said B.L.Bagra, director, finance, Nalco.

The finalization of the terms of the JV agreement will be followed up with preparation of detailed project report (DPR) for the venture. The company had recently invited bids for appointment of consultant for DPR and Tata Consulting Engineers, Dastur & Co, Engineers India (EIL) and Canadian firm, SNC Lavlin are vying this Rs 5 crore contract.

The JV agreement is a pre-curser to DPR as this will provide a clear picture on the cost to be corne towards procurement of coal and transportation.

While the company expects the partnership with the Indonesian government company Pt Antam will help the project to sail smoothly in that county, the tie up with MEC, which operates coal mines, rail lines and port in East Kalimantan province, will be strategic in securing raw material supply and transport infrastructure for the smelter and power plants.

With the debt equity ratio of the Rs 18,000 crore-project being pegged at 70: 30 and Nalco intent on having at least 50 per cent stake init, the equity exposure of the company is estimated at around Rs 2,700 crore.

After the JV agreement and finalization of DPR, the company will seek the approval of its board and the government for equity investment and approach foreign financial institutions for financing the project.

The debt component at Rs 12,400 crore being a sizeable amount, the company will seek international consortium financing, Bagra said.

With the DPR expected to take about 8 months to prepare, the work on the project is expected to start within a year from now, he added.

Source: Business Standard
 
 
 
  Hindalco to borrow INR 14000 crore to step up aluminium capacity  
  ET reported that Hindalco Industries plans to borrow about INR 14,000 crore in the next couple of years to build 2 new plants that will treble its aluminium making capacity as increased production of cars and aircraft, fuel demand for the white metal.

The debt will be in the form of so called non recourse loans which in this case mans they won’t be on the books of Hindalco. Instead they will be secured by the assets of Aditya Mahan Aluminium. The loans will be repaid from the cash flow generated from the projects.

Mr. Debu Bhattacharya MD of Hindalco said that Mumbai based metals major that become one of the world’s top 5 aluminium makers after buying Canada’s Novelis in 2007 needs about INR 9,200 crore each for the Aditya Aluminium and Mahan Aluminium Projects. It aims to start the pants by 2012.

Mr. Bhttacharya said that the expansion is being geared to meet demand. Aluminium demand in India is very positive due to auto, construction and electrical sectors. Although world aluminium demand fell 8% in 2009 due to the slowdown, it is likely to rise 14% in 2010 mainly because of rising consumption in China and India.

Mr. Sunirmal Talukdar CFO of Hindalco said that “If you include Utkal Alumina, then we have USD 5 billion worth of projects under execution and we intend to keep the debt equity ratio at 70:30. These are project finance loans under which lenders set certain milestones and after completion of those milestones, funds are disbursed. Funds are not drawn down unless the project is on the ground.” HE said that the equity portion of the projects which is 30% of the base cost has already been tied up.

Aditya Aluminium is a Greenfield complex, producing both alumina and aluminium at a site in Orissa. Uktal Alumina also in the same state produces alumina a feedstock for the metal. Mahan is a new aluminium plant in Madhya Pradesh.

Source : Economic Times
 
 
 
  Corporate Roundup: Hindalco Industries' expansion plans  
  Hindalco Industries has seen a gradual decline in its stock price in the last two months, following concerns over growth in the European economy and weaker then expected recovery in the US.

However, the company, one of the top five aluminium producers in the world, is poised to benefit from its expansion plans and all round efficiency improvement in the long term. The company has a presence in two fast-growing non-ferrous segments including aluminium and copper. It has increased its focus on process efficiency apart from volume growth. This has helped the company to achieve better operating margin for its subsidiary Novelis.

The company is investing heavily in both greenfield and brownfield projects. It has chalked out plans to commission an aluminium capacity of 359 kpta by the second quarter of FY12. This will give Hindalco a much-needed higher capacity to meet growing industry demand. It expects to fulfill 40% of the concentrate demand internally through its own mines and is also looking out for acquiring copper mines. Hindalco reported standalone sales of Rs 19,536 crore in FY10, reflecting a year-on-year growth of 7%.

Net profit was down 14% to Rs 1,916 crore, mainly due to higher coal cost and lower international prices. On a consolidated basis, net profit rose from Rs 484 crore last year to Rs 3,925 crore. The sharp increase in profit was mainly due to a unrealised derivative gain of about $578 million and improved margins at Novelis. Hindalco operates in a volatile commodity market where margins are dependent on demand for a commodity and prices. Any bad news on the demand side can affect stock prices in the short term.

Having said that, the long-term growth outlook for Hindalco seems positive. Given the forthcoming capacity expansion projects, Hindalco will gear itself for the likely higher demand in emerging markets and South America. The company’s profitability in the next two years is expected to increase significantly because of lower cost of operation, higher volume and increased margins.

Economic Times – 14 June 2010.

Source: http://economictimes.indiatimes.com/features/investors-guide/Corporate-Roundup-Hindalco-Industries-expansion-plans/articleshow/6043991.cms
 
 
 
  Novelis turns strong ally for Hindalco  
  Hindalco’s consolidated balance sheet appears stronger. Its debt-to-equity ratio has improved to 1.1 times as of 31 March, from 1.8 times a year ago Shares of Hindalco Industries Ltd ended up 1.2% on Friday, bettering the broad market’s gain of 0.6%. The non-ferrous metal company reported its consolidated results for fiscal 2010. Revenue and profit at its Canadian subsidiary Novelis rose, and Hindalco also ended the year with a much stronger balance sheet.

 
 
Graphic: Ahmed Raza Khan/Mint
During the March quarter, Novelis shipped 18% more of its rolled aluminium products than in the year-ago period, and 10% more than in the preceding quarter. Sales grew in all the regions it operates in, a first since the global downturn. But the real improvement comes in Novelis’ adjusted Ebitda, which rose fourfold to $231 million (Rs1,079 crore) over the year-ago period. Ebidta stands for earnings before interest, depreciation, tax and amortization, and is adjusted by Novelis for derivative-related gains/losses and restructuring charges.

What drove the Ebidta improvement? In a conference call, the company management said that right-sizing of operations and higher efficiency contributed to better profitability. Novelis also reported a free cash flow of $355 million in the March quarter compared with $213 million in the preceding quarter. Controlled capital expenditure and better working capital management helped.

 
 

The outlook for Novelis in fiscal 2011 appears good, with the management expecting regions such as Asia and South America to continue to drive growth, even as developed markets trudge back to normal levels.

The company will continue to focus on operational improvements, with adjusted Ebitda in fiscal 2011 to exceed $1 billion compared with $754 million in 2010. Novelis is investing in higher capacities, especially in South America, during 2011 and will also acquire additional capacity in markets such as Asia. It also plans to invest further to improve operational efficiencies across its plants. Overall, it will spend $250 million, or around 2.5 times what it spent in 2010.

While the long-term demand outlook for Novelis seems good, its higher capital expenditure plans and the lag effect of rising aluminium prices in the fourth quarter may see some effect on its shorter-term free cash flows. Aluminium prices have begun to decline in the first quarter of 2011. While prices are a pass-through for the company, as it is a processor, its quarterly results may show some volatility as a result.

Hindalco’s consolidated balance sheet, too, appears stronger. Its debt-to-equity ratio has improved to 1.1 times as of 31 March, from 1.8 times a year ago. That will allow it to fund its domestic expansion plans without unduly straining its balance sheet.

In the longer term, its performance will be driven both by its domestic expansion programme and continued growth at Novelis.

In the near term, however, falling aluminium prices could pose a threat to the profitability improvements seen in recent quarters.

Source: http://www.livemint.com/2010/06/06232133/Novelis-turns-strong-ally-for.html?h=B

 
 
 
  Hindalco sees India aluminium demand growth surge  
  India's top aluminium maker, Hindalco Industries (HALC.BO: Quote), sees domestic demand posting double-digit growth in the current fiscal year, outpacing a modest rise in North America and Europe, a top official said.

Hindalco, part of the diversified Aditya Birla group, last week said 2009/10 net profit had surged although net sales declined as a global economic slowdown hit demand.

"Aluminium demand in India is very positive because of auto, construction and electricals sectors. Even globally, I would be very surprised if aluminium prices come down from current levels," Managing Director Debu Bhattacharya told reporters.

Source: http://af.reuters.com/article/metalsNews/idAFSGE65706A20100608
 
 
 
  India's NALCO cuts aluminium price by $127.5/tone  
 

BHUBANESWAR, India, June 9 (Reuters) India's state run National Aluminium Co Ltd (NALU.BO: Quote) has cut prices by 6,000 rupees ($127.5) per tonne in line with the London Metal Exchange, a senior company official said Wednesday.

"We have reduced the price of all aluminium products because the LME aluminium prices have come down," said the official, who could not be named due to company policy.

NALCO, the country's third-largest aluminium producer, produced 431,000 tonnes of the metal in the fiscal year to March. ($1=47.03 Indian rupee) (Reporting by Jatindra Dash; Editing by Unnikrishnan Nair)

Source: http://af.reuters.com/article/metalsNews/idAFB69798620100609

 
 
 
  Hindalco to treble aluminium production capacity in two years  
  Hindalco plans to borrow Rs14000 crore for Rs10000 crore capex news 09 June 2010 Hindalco Industries, the flagship company of the Aditya Birla Group, on Tuesday outlined a capital expenditure of Rs10,000 crore in financial year 2010-11. A major portion of the capex will be to fund its ongoing greenfield aluminium projects at Mahan in Madhya Pradesh and Aditya Aluminium in Orissa.

Hindalco also said it plans to borrow about Rs14,000 crore in the next couple of years to build the two new plants that will treble its aluminium making capacity as increased production of cars and aircraft fuel demand for the metal.

Hindalco managing director Debu Bhattacharya said in Mumbai the company will raise long-term debt of Rs7,000 crore through banks and various other options. ''There will be no further equity dilution as we had already tied up the equity fund requirements,'' he added.

The company is also scouting to acquire copper mines to bridge the shortfall of its ore requirement. Hindalco currently has a consolidated debt of $5 billion (Rs23,420 crore), with the Canadian subsidiary Novelis Inc accounting for $2.7 billion. The company has no major repayment scheduled till 2014. Novelis had $1 billion in cash as on 31 March 2010.

In the copper business, the company targets to increase ore supply from in-house sources to 40 per cent from the current 25 per cent. To meet this target, the company is in talks with various miners abroad to either strike a buyout deal or sign a long-term contract at a fixed price, said Bhattacharya.

Source: http://www.domain-b.com/companies/companies_h/Hindalco/20100609_aluminium_production.html

 
 
 
  International Aluminium Institute Launches Aluminium in Transport Website  
  THE FUTURE MOVES WITH ALUMINIUM

June 09, 2010 - Press Dispensary - Shanghai -- The International Aluminium Institute (IAI) Chairman Svein Richard Brandtzæg today welcomed the launch of the latest in the series of IAI product-related sustainability websites highlighting the advantages of the use of aluminium in transport. Recognising the demand from car manufacturers (OEMs) and consumers around the world for up-to-date and easy to access information, IAI has developed an online resource on the unique properties of aluminium transport applications, as well as their fuel efficiency and emissions reduction benefits.

Launched today at the China Aluminum Fabrication Forum, the website features some of the world’s leading OEMs and their innovative use of aluminium components in the design of safe, lightweight, fuel efficient and cost effective vehicles. It also provides credible and accurate life cycle data, which underpin and support the aluminium industry’s sustainability and the sustainability of its products. The transport website follows on from the success of the IAI’s Green Building Website (http://greenbuilding.world-aluminium.org) in 2009, which has proved popular with architects and other building professionals, looking for sustainability data and real life examples of aluminium applications in green buildings.

Commenting on the website, Mr. Brandtzæg said “Through its light weight, versatility, durability and recyclability, aluminium is a material that is increasingly being employed in safe, stylish, cost effective and energy efficient vehicles. Providing vehicle manufacturers and consumers with information on the environmental performance of applications in use is essential for making informed material choices – this website is a one-stop-shop for such information and for real life examples of aluminium-intensive, lightweight, energy efficient vehicles.”

Launching the website Ron Knapp, Secretary General of IAI, said “We are pleased to take advantage of this respected forum, to present some examples of the innovative ways in which aluminium products are employed in sustainable modes of transport, such as high speed trains, urban buses, lightweight cars and trucks with more carrying capacity.”

This website was created by Interstruct Berlin for the International Aluminium Institute, in cooperation with national and regional aluminium associations around the world. The site is expected to go “live” over the next few weeks.
 
 
 
  Hindalco may borrow Rs 14k cr to step up aluminium capacity  
 

Mumbai: Hindalco Industries plans to borrow about Rs 14,000 crore in the next couple of years to build two new plants that will treble its aluminium making capacity as increased production of cars and aircraft, fuel demand for the white metal.

The Mumbai-based metals major – that became one of the world’s top five aluminium makers after buying Canada’s Novelis in 2007 – needs about Rs 9,200 crore each for the Aditya Aluminium and Mahan Aluminium projects. It aims to start the plants by 2012, according to managing director Debu Bhattacharya.

The debt will be in the form of so-called non-recourse loans, which in this case means they won’t be on the books of Hindalco. Instead they will be secured by the assets of Aditya Mahan Aluminium. The loans will be repaid from the cash flow generated from the projects.

“If you include Utkal Alumina, then we have $5 billion worth of projects under execution and we intend to keep the debt-equity ratio at 70:30,” said Hindalco CFO Sunirmal Talukdar. “These are project finance loans under which lenders set certain milestones and after completion of those milestones, funds are disbused. Funds are not drawn down unless the project is on the ground,” he added.

The equity portion of the projects, which is 30% of the base cost, has already been tied up, said Mr Talukdar.

Aditya Aluminium is a Greenfield complex, producing both alumina and aluminium at a site in Orissa, Uktal Alumina, also in the same state, produces alumina, a feedstock for the metal. Mahan is a new aluminium plant in Madhya Pradesh.

The expansion is being geared to meet demand, “Aluminium demand in India is very positive due to auto, construction and electrical sectors,” said Mr Bhattacharya. Although world aluminium demand fell 8% in 2009 due to the slowdown, it is likely to rise 14% in 2010, mainly because of rising consumption in China and India.

Average prices of aluminium on the London Metal Exchange in the year ended March 31, fell 16.6% to $1,903.6 a tonne. Global demand for the metal which is also used in beverage cans is expected to increase 10% this year, led mainly by China. Mr Bhattacharya said that average aluminium prices would be about $2,000 per tonne.

Hindalco also said that it plans to acquire copper mines. “Our aim is to have 40% of our concentrate requirement from our own mines. We are still short of that,” said Mr Bhattacharya. Hindalco operates copper mines in Australia through its subsidiary Aditya Birla Minerals.

Share of Hindalco fell 5.8% to Rs 132.2 in a weak trading market, on a day when the broader market was down 1%.

 
 
 
  Vedanta Aluminium recognized as Green Leader in mining and metal industry  
  Report by Orissadiary correspondent; Bhubaneswar:

Vedanta Aluminium Limited, Lanjigarh has been awarded The Financial Express – Emergent Venture India (FE_EVI) Green Business Leadership Award in Mining and Metal Industry or its commitments and continuous improvements towards environment protection, minimizing greenhouse gas emission through selection of state of art technologies and bringing awareness about Climate change.

The award was presented by Dr. Farooq Abdullah, Minister for New and Renewable Energy (MNRE) at a function organized in Delhi in World Environment Day i.e. 5th June, 2010 which was attended by others Corporate and other eminent personalities like Mr. RK Pachori, Director General, TERI beside Chairman of Navratan PSU’s like ONGC, Coal India Ltd.

The award was presented based on a study carried out by The Financial Express, Emergent Venture India along with Indian School of Business – Hyderabad to capture the trends and best practice in Climate change mitigation across key Industries of India. It covers 9 power intensive like cement, mining & metal, power, paper & pulp, oil & gas, iron & steel, information technology, chemicals & fertilizers an banking. The study identifies Green Leaders for each industry by proving a Green Leader framework drawing form the global best practices and incorporating them in the Indian context. The basic objective of the study is to raise awareness about the Indian Industry an also to provide an objective standard that they need to aspire.

Recently, Vedanta Aluminium Lanjigarh was also awarded the International Safety Award by British safety Council. Speaking on the occasion, Dr. Mukesh Kumar, Chief Operating Officer, VAL-Lanjigarh observed that environmental protection and safety is an integral part of Vedanta’s business practices. This has been demonstrated by the company being the 1st Alumina Refinery in the country having “Zero Discharge” system. It is aiming to become the 1st “Zero Waste” Refinery in the World by 2015 through utilization of all wastes like Red Mud, Lime Grit and Fly Ash etc.
 
 
 
  Demand for Aluminium by 2020  
 

By the year 2020, the Aluminium demand is projected to get increased to 70 million tonnes, with over 30 million tonnes obtained from recycled scrap. Recycling Aluminium that is currently in use as cars, commercial vehicles, ships, airplanes etc would equal up to 18 years of primary Aluminium output. The amount of Aluminium produced from old scrap has been growing from 1.4 million tonnes in 1980 to a whooping 6.8 million tonnes in 2004. The transport sector has been the most important resource of recycled Aluminium. Today recycled Aluminium is produced from 44% transport, 28% packaging, 10% engineering and cables and only a mere 7% from building applications due to its long use phase. Shown in the fig is a graphical representation of Aluminium scrap sources . However, Aluminium recycling will undergo major changes through the next decade. Buildings that contributes only 7% of aluminium scrap now; will represent up to 33%, recycled aluminium from transport will fall down to 32%. The schematic representation of the forecast is shown in the fig. The growing markets for Aluminium are supplied by both primary and recycled metal sources. The increase in demand for Aluminium and long life time of the products mean that the overall volume of primary metal will continue to be noticeably greater than the volume of recycled metal. It will be clear from the representation that the volume of primary metal will continue to be much more than recycled Aluminium if recycling rate is not increased. GLOBAL ENERGY SAVINGS DUE TO ALUMINIUM RECYCLING Recycling Aluminium saves up to 95% of energy required for primary Aluminium productions thereby avoiding harmful emissions including green house gases. Improving overall recycling rate of Aluminium is very much essential for sustainable development. Today, recycling of Aluminium scrap saves up to 80 million tonnes of green house emissions per year, which is equivalent to the emission of 15 million cars. The reduction in Co2 emissions in future by the End-life Aluminium recycling is predicted and shown below. The objective of the Aluminium industry for 2020 or beyond is to reduce the green house emissions, conserve less energy and avoid dependence on natural resources; with the help of recycling. All the energy inefficient materials used today will be replaced by Aluminium (especially transport applications). And so the demand for the same will shoot up. Inorder to eliminate the energy losses during the production of Aluminium due to this increased demand, recycling of Aluminium scrap has to be followed from now!

Source: http://www.petroscrap.com/demand-for-aluminium-by-2020

 
 
 
  Novelis expands can aggregation centre network  
  West Midlands-based recycling company Mason Metals has begun operating as an aggregation centre for aluminium can recycling giant, Novelis Recycling.

The move means that waste management companies, local authorities and secondary metal dealers who collect Used Beverage Cans (UBCs) in the area will not have to travel too far to sell them. Novelis currently has seven other aggregation centres around the UK but none in the Midlands until now.

 
   
  The team from Mason Metals with bales of used
aluminium cans ready to be sent to Novelis. (l-r)
Neil Woodall, John Shaw and Andrew Jones
 
 
Mason Metals, which celebrates 50 years in business this year, has branches in Dudley and Halesowen with the main recycling centre operating at the Halesowen premises. It specialises in non-ferrous metal recycling.

The company accepts can loads of over 250kg, which can be delivered either baled or loose. The cans are checked to ensure they meet the Novelis specification and baled if necessary.

It then transports the cans on to the Novelis plant in Warrington for reprocessing into ingots of recycled metal which are then rolled into the sheet used by customers in the beverage can manufacturing industry.

Novelis claims that the recycling process saves 95% of the energy and 97% of the associated greenhouse gas emissions compared to manufacturing aluminium from its raw materials.

Source: http://www.letsrecycle.com/do/ecco.py/view_item?listid=37&listcatid=217&listitemid=55475&section=Metals
 
 
 
  Hindalco's US arm saves $230 m on cost control  
 
“Taking advantage of the recent economic meltdown we have managed to shut down some of our high-cost manufacturing facilities which resulted in the cost savings.” — Mr Debu Bhattacharya, MD, Hindalco Industries

Focus on cost reduction and a better product mix has enabled Novelis Inc, the US subsidiary of Hindalco Industries, to save $230 million, for the financial year ended March 31, 2010. Novelis, the world's leading producer of aluminium rolled products, has also managed to bring down operating cost by $70 million in the fiscal.

Mr Debu Bhattacharya, Managing Director, Hindalco Industries, told the Business Line that the shift in focus from being volume driven to profitability, enabled improvement in EBITDA.
 
 


“Taking advantage of the recent economic meltdown, we have managed to shut down some of our high-cost manufacturing facilities which resulted in the cost savings,” he added. Hindalco has declared a dividend of Rs 1.35 an equity share for the fiscal year.

Adjusted EBITDA for the year was at $754 million, against $486 million, representing a growth of 55 per cent. Shipments of aluminium rolled products were marginally down 2 per cent at 2,708,000 tonnes (2,770,000 tonnes) largely due to softer end-market conditions, in most of the regions, in the first half of the year.

For the fourth quarter, shipments increased 18 per cent to 716,000 tonnes from 605,000 tonnes in the fourth quarter of the previous year, primarily due to strong growth in North America, Europe and Asia. Net sales in FY ‘10 decreased 15 per cent to $8.7 billion ($10.2 billion), due to lower prices.

Novelis reported that the net income attributable to its common shareholder of $405 million for fiscal year 2010, was significantly higher, compared to the net loss of $1.9 billion reported for the same period, a year ago.

The variations in aluminium prices do not impact Novelis, as the company passes on the impact of raw material cost to customers, said Mr Bhattacharya.

To debottleneck and increase capacity, primarily in South America and Asia, Novelis plans to invest about $150 million in FY ‘11. A significant amount is aimed at expanding its rolling operations in Brazil. The investment will increase capacity by over 50 per cent and support the rising demand for flat rolled products. The expansion programme is expected to be completed in 2012.

Outlook
Novelis expects the South American and Asian markets to continue to grow, while North America and Europe may see moderate increase in demand. The results are expected to continue to strengthen, given the market conditions, price increase and continued cost management initiatives, he added. The consolidated revenues of Hindalco Industries was down 8 per cent at Rs 60,722 crore (Rs 65,963 crore), while net profit rose eight-fold to Rs 3,925 crore (Rs 484 crore). Hindalco shares on the BSE were up one per cent at Rs 148 on Friday.

Source: Business Line – The Hindu, Saturday. June 05, 2010

 
 
 
  Automobile sector reports highest growth in a decade  
 

With the support of several automobile manufacturers with new brands in the compact car category and easier availability of finance and the low-base effect of last year helped the Indian automobile industry to continue its growth momentum of 2009 into April 2010 as well, with passenger car sales reporting their highest growth in a decade. According to the Society of Indian Automobile Manufacturers (Siam), total passenger car sales in the country surged 39.5 per cent last month at 1,43,976 units during the same month last year. This is the highest growth in car sales in April in the last 11 years. Car sales had grown 50.3 per cent in 1999. However, on a month-on-month basis, there has been a decline of 7.4 per cent in domestic passenger car sales in April, signaling the upcoming impact of increasing commodity prices. According to SIAM data, 1,55,600 units of passenger cars were sold in March; 1,53,845 units in February; and 1,45,905 units in January. According to Jajoo, while new launches in the compact car category and easier availability of finance were some factors that supported growth so far, demand would get impacted from the second quarter onwards, as raw material prices continue to shoot up and higher base effect comes into play.

“On the back of overall improvement in the economy over the last few quarters, there is an improvement in customer sentiment and, therefore, high sales in April, which is traditionally a lean month, as people advance their purchases. However, we have already started seeing moderation in demand and, going forward, it could stabilize at these levels,” said Vishnu Mathur, the newly-appointed director-appointed director-general of Siam.

Source: Minerals & Metals Review Weekly, May 17, 2010

 
 
 
  Novelis Selected as Leading Supplier of Aluminium Sheet for New BMW 5 Series Saloon  
  Novelis Fusion(TM) technology enables advanced door design

ATLANTA, May 26, 2010 - Novelis announced today that it has been selected as the main supplier of aluminium sheet for the sixth generation BMW 5 Series saloon, which went on sale this spring. This latest model features lightweight aluminium sheet in the doors, bonnet, front fenders and reinforcement parts. In addition, BMW has specified Novelis Fusion(TM) technology for the door structures, which is likely to be the biggest-selling automotive application to date for this patented multi-layer aluminium product.

"Novelis has been bringing innovative material solutions to BMW throughout a relationship that spans over 18 years," said Tadeu Nardocci, senior vice president of Novelis Inc. and president, Novelis Europe. "We are delighted to have been selected as the main supplier of aluminium sheet for the new 5 Series saloon. It is particularly exciting to see our proprietary Novelis Fusion(TM) technology, which is already featured on the BMW 5 Series Gran Turismo and the 7 Series saloon, also being integrated into the high-volume 5 Series saloon."

The use of Novelis Fusion(TM) has enabled BMW to manufacture one-piece aluminium door structures, with integral window frames, to a design that is not achievable with conventional aluminium sheet. The result is a 25 percent reduction in the weight of the door, when compared with a similar steel design. It is the unique combination of core properties and surface characteristics provided by the multi-alloy composition of Novelis Fusion(TM) that makes this possible.

The new 5 Series continues BMW's growing use of aluminium sheet in its vehicles. Novelis also currently supplies aluminium sheet for a range of other BMW models, including the M3 Series, 6 Series, 7 Series, X6, X5 and Z4. The lightweight material helps deliver improved handling and performance through overall vehicle mass reduction. It also plays a significant role in achieving a near-perfect 50:50 weight distribution between the front and rear of the vehicle.

Novelis is widely-recognised as a global leader in the production of aluminium sheet for the automotive sector. The company is supplying specially-treated 5000 and 6000 series automotive sheet as well as its Novelis Fusion(TM) AF350 product for the BMW 5 Series. Novelis Fusion(TM) is an innovative, patented, multi-layer aluminium product that Novelis has dubbed "The new aluminium(TM)" because it offers performance benefits that are not achievable with conventional aluminium.

Source:
http://blog.taragana.com/pr/novelis-selected-as-leading-supplier-of-aluminium-sheet-for-new-bmw-5-series-saloon-20501/
 
 
 
  Novelis Wins Fujifilm Supplier Award  
  Leading Aluminum Company named Preferred Supplier

ATLANTA, May 24 /PRNewswire/ -- Novelis announced today that it has won Fujifilm USA's Aluminum Supplier Quality Award and has been named Fujifilm's Preferred Supplier for aluminum sheet in both North America and Europe. The company's preferred status was marked by the signing of a new long-term contract for the supply of premium lithographic-quality sheet to Fujifilm's Graphic Systems business, which makes equipment for the printing and publishing industries.

Novelis Inc. is the global leader in aluminum rolled products and aluminum can recycling. The company operates in 11 countries, has approximately 12,000 employees and reported revenue of $10.2 billion in its 2009 fiscal year. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial and printing markets throughout North America, South America, Europe and Asia. Novelis is a subsidiary of Hindalco Industries Limited (BSE: HINDALCO), one of Asia's largest integrated producers of aluminum and a leading copper producer. Hindalco is a flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India.

Source: http://www.prnewswire.com/news-releases/novelis-wins-fujifilm-supplier-award-94738809.html

 
 
 
  Aluminium poised for gains even as market remains uncertain  
  The markets witnessed a higher turnover week as the traders participated in the volatility in the markets. Profit sales on bullion presented an opportunity for momentum players and the selling in the industrial commodities complex continued.

Aluminium has exhibited a lower ‘tops and bottoms’ formation for five weeks in a row and is attempting to move upwards if the bar reversal on the weekly charts is any indication. Watch the Rs 90 level as a sign of immediate support, below which the outlook may turn weak. As long as the bulls manage to defend this floor, the possibility of an upthrust remains. Market internals indicate a 5% decline in turnover and a 9% increase in open interest.

Source:
http://www.dnaindia.com/money/column_aluminium-poised-for-gains-even-as-market-remains-uncertain_1386887
 
 
 
  Importation of aluminium brands threaten local market  
  Local aluminium brands are under threat following the annual importation of the product put at over N100 billion. Local manufacturers complain that importation of the product, especially from China, is seriously affecting their operations.

The manufacturers told BusinessDay that foreign aluminium brands were inferior to local products, but still they were being patronised by gullible Nigerians who do not know the difference.

According to Emeka Ezeh, an aluminium dealer at Aluminium Village in Dopemu - Lagos, about 100 containers of 40ft each of aluminium product enter the village weekly with each costing between N12 million and N17 million each.
 
 
  Sources in some of the aluminium manufacturing companies argue that the importation is affecting the level of employment in the sector and discouraging local investors.

Presently, there are seven aluminium manufacturing plants in Nigeria with a total of about 3,500 employees, and the sources maintain that this level of employment could go up if importation is limited.

However, an importer at the village explained that not all companies import sub-standard products. To him, the Chinese manufacturing companies produce importer's specification, noting that those who import sub-standard brands do that to maximise profits.
 
  Source:
http://www.businessdayonline.com/index.php?option=com_content&view=article&id=11129:importation-of-aluminium-brands-threaten-local-market&catid=129:branding
 
 
 
  Nalco Q4 net jumps 5-fold to Rs 391 cr  
  MUMBAI: State-run National Aluminium Company Ltd (Nalco) said its net profit registered a jump of about five-fold to Rs 391.48 crore during the fourth quarter ended March 31, 2010, against Rs 83.02 crore in the same quarter ended March 2009.

In a filing to the Bombay Stock Exchange, the company said its total income rose to Rs 1,625.97 crore during January-March quarter of 2010 from Rs 1,125.66 crore in the same period previous fiscal.

For the year ended March 31, 2010, the company has reported a net profit of Rs 832.60 crore, down 34.55 per cent over the same year-ago period. — PTI

Source:http://www.thehindubusinessline.com/businessline/blnus/26151101.htm
 
 
 
  Hindalco-Almex Aerospace Limited (HAAL)  
  Hindalco-Almex Aerospace Limited (HAAL) is a joint venture (JV) between Hindalco Industries Limited (70%) and Almex USA Inc. (30%) specially designed to manufacture 2xxx and 7xxx series aluminium alloys. Hindalco is one of the leading primary companies. Almex is a world leader in hard aluminium alloy casting technology with headquarters in Long Beach, CA. The JV was formed in November 2006 and a site purchased in early 2007 with construction following soon thereafter.

The new facility was commissioned in November 2008 and has a capacity to manufacture 12,000-tons per year and hard alloys, with an eventual capacity of 46,000 tons per year to be reached in four phases. The facility presently manufacturers aluminium alloy billet with plans to manufactures slab at a later date. Product range is beyond the scope of a normal casthouse, both in terms of type of alloys and sizes.
 
   
  Discussion during lunch: (L-R) Shashi Maudgal, executive president – marketing, Hindalco; Abhey Agarwal, ceo, HAAL; Gracewill D’Souza, head sales and marketing, HAAL; and Rick Creed, president, Weber Metals.

Source: Light Metal Age, April 2010.
 
 
 
  Nalco may see disinvestment  
  Aluminium producer National Aluminium Company (Nalco) may see a 10 percent equity dilution to divest government's stake. Currently, the government holds 87.15 per cent stake in the world's lowest cost aluminium major while the public holds the rest. However, the company board is yet to take its view on the proposed divestment which may raise around Rs 2,000 crore for the government. The Navratna firm's CMD A K Srivastava had earlier said that the government plans to dilute equity on only those companies in which it holds more than 90 percent. Hence, there is no question for a stake sale in Nalco. But, the recent statement by Mines Secretary Santha Sheila Nair clarified the government stand. Now, the company board will take a final view on the proposal soon. Recently, the Department of Disinvestment had written a letter to the Ministry of Mines to consider 10 percent disinvestment in Nalco. The letter has been forwarded to Nalco board which is yet to take a final decision in this regard. Earlier this month, Mines Minister B K Handique said that the Ministry of Finance had evinced interest in selling 10 percent stake in the firm, but the administrative ministry was yet to take a view on it. Nalco may not raise any fresh equity along with the proposed stake sale, its CMD A K Srivastava said last month. The Ministry of Mines is currently considering a further public offer (FPO) in PSU Hindustan Copper Ltd, to raise an estimated about Rs 4,500 crore for each - the miner and the government. The Centre is likely to go ahead with divestment in 12-15 public sector units, including SAIL, Coal India, Hindustan Copper, SJVNL and EIL among others in the current fiscal to raise about Rs 40,000 crore.  
 
 
  Arbitration on sale in Balco reaches final lap  
  Arbitration on sale of the residual government stake in Bharat Aluminium Company (Balco) has reached the final lap, in the hearing by a bench of three retired judges. According to the company executives, the final decision will be taken in this regard by August this year. The judgement is expected in the following fortnight. The arbitration started at the end of last year and has already had two hearings in December and February, in which former Union Law Minister Shanti Bhushan represented Sterlite Industries, the majority owner in Balco, and Senior Counsel A K Ganguli represented the government's case. Sterlite, a subsidiary of London-listed Vedanta, bought 51 percent of Balco in March 2001 for Rs 552 crore, when the National Democratic Alliance government decided to divest the government's stake in the public sector company. Sterlite was given the right to buy the remaining stake after a three-year period. So, in March 2004, Sterlite sent the government a call notice and a cheque of Rs 1,099 crore for Balco's residual stake, in accordance with the shareholders' agreement. But, differences in the value of the government's residual stake came up after the United Progressive Alliance came to power in May 2004. The issue was referred to the Attorney General, who then termed the call option invalid under Section 111A of the Companies Act. He said, however, that the residual stake could be sold at the market price. In 2006, Sterlite moved the Delhi High Court for interim relief, to ensure the government did not sell the stake to anyone else. The high court asked for reconciliation and arbitration. The government then directed a committee of secretaries to explore ways to reconcile the issue. In May 2008, the committee recommended that to discover the correct price of the stake in the unlisted company, the government should sell 10 percent in an initial public offer (IPO). That July, the Cabinet Committee on Economic Affairs approved the IPO after the ruling UPA parted ways with the Left parties. Sterlite, however, rejected the IPO; it said it had the right to buy the entire residual stake.  
 
 
  Japanese aluminium shipment rises  
 
Japanese shipments of aluminium products rose 50.3 percent in March from a year earlier to 186,714 tons, the fourth straight month of year-on-year climbs, Japan Aluminium Association data showed. That was up 13.7 percent from February, the second month-on-month gain, but still 3.5 percent below levels in March 2009 before the global economic crisis hit demand. The association has said that shipments for the fiscal year that began on April 1 are expected to reach 1.975 million tons, up from 1.854 million tons estimated for this financial year. Japan is Asia's largest importer of primary aluminium. The global economic crisis reduced demand for the metal as automakers and other manufacturers cut output after late 2008, but Japanese aluminium shipments have been recovering thanks to a pick up in demand in the electronics and food sectors. The recovery was also underpinned by prospects for an increase in demand in India and China for the metal, used widely in products ranging from computers to planes. But aluminium industry officials remain cautious about the pace of recovery this year as Japan's economy faces persistent deflation and with notable weakness in the construction sector. Aluminium stocks held at three major Japanese ports came to 192,800 tons at the end of March, down 7,900 tons or 3.9 percent from a month earlier, trading house Marubeni Corp said earlier this month. Japan's exports held firm in March in a sign that solid growth in Asia and a rebound in the US economy is fuelling Japan's export-driven recovery, boding well for first-quarter growth. But the strength in exports has been slow to spill over to the domestic economy, with many companies struggling to deal with deflation. Mazda Motor Corp and Mitsubishi Motors Corp, Japan's No.5 and No.6 automakers, forecast a more than trebling in annual operating profit counting on new models to ride a sales recovery in the US and other markets.
 
 
 
 
safty awards NADCA 2007 Aluminum Casting: Squeeze/Semi-Solid Casting of the Year Award

Contech utilized an innovative tooling design capable of producing this large, complex Rack & Pinion Steering Gear for a major transplant OEM for their large-scale pickup line.   Contech was able to develop a two-cavity die in order to meet the customers cost targets, yet still maintain the stringent burst test and part quality requirements.   Contech used its P2H squeeze casting process incorporating a vertical shot into a die split vertically with horizontally moving die blocks in 2000-ton die cast machine.   Although neither Contech nor the OEM had worked on a two-cavity squeeze cast rack and pinion gear of this size before the launch of this program was extremely successful. Contech won the NADCA 2007 Aluminum Casting: Squeeze/Semi-Solid casting of the year award for this part.
 
 
 
 
safty awards 2007 NADCA Aluminum Casting: 1 to 10lb. Casting of the year award.

Shock towers are typically manufactured using a series of steel stampings that are welded together during the construction of a vehicles body.   Using a new casting technology called High-Q-Cast, Contech was able to provide a lighter weight aluminum casting replacing (7) stamped components and providing a weight savings of approximately 40%.

These heat-treated aluminum shock towers have very thin walls (4-mm), and give manufacturers the ability to weld and rivet the castings to other components.  Contech’s innovative technology on the Shock Tower casting won the 2007 NADCA Aluminum Casting: 1 to 10lb. Casting of the year award.
 
 
 
 
safty awards 2008 NADCA Aluminum Casting: Less than 1-Pound award.

Thrust rods in suspension systems are traditionally manufactured from steel stampings, extrusions, and steel rods.Contech worked with their customer, a European OEM, to reduce the weight of the thrust rod while maintaining the stiffness qualities at a lower cost using our high-pressure die casting process.

The casting replaced the original 3-piece design down to a single part and reduced the original mass by approximately 50%.

In order to meet the stiffness requirements using a high-pressure die casting the Contech design team strategically placed specially shaped ribs in key areas of the thrust rod.This Contech designed part won the 2008 NADCA Aluminum Casting: Less than 1-Pound award.
 
 
 
 
safty awards

2008 NADCA Aluminum Casting: Squeeze/Semi-Solid Casting Award

Historically, steering knuckles were forged in iron to withstand the intense stress produced from connecting the tie-rod to the hub and providing support for the wheel bearing.  In response to the growing demand for the use of aluminum to improve performance and fuel economy Contech has been a leader in proactively working with our customers on re-designing parts from iron to aluminum.   Contech worked with our major European OEM customer to design an aluminum rear steering knuckle that met and exceeded the mechanical properties, durability, and weight reduction targets.   The rear steering knuckles are cast as a pair (one LH and one RH) from a two-cavity die using our P2H squeeze casting process.
 
 
 
 

safty awards

RoSPA Occupational Health & Safety Award Winner

Contech Operating UK Ltd, Welshpool is celebrating winning one of the prestigious RoSPA Occupational Health and Safety Awards in 2008.

David Rawlins, RoSPA Awards Manager said “Contech Operating UK Ltd has shown a commitment to protecting the health and well-being of its employees and others. We hope other businesses and organizations will follow its lead and strive for continuous improvement in health and safety management”

The RoSPA awards are not just about reducing the number of accidents and cases of ill-health at work; they help to ensure that organizations have good health & safety management systems in place. Entering the awards scheme reinforces the message that good health & safety is good business and clearly demonstrates an organization’s dedication to the achievement of high levels of performance in this crucial area.

The RoSPA Occupational Health and Safety Awards 2008 are sponsored by NEBOSH (The National Examination Board in Occupational Safety and Health), the leading health and safety professional examining body.

The President of RoSPA, Baroness Anne Gibson of Market Rasen, Deputy President, Lord Jordan of Bournville, and Vice-President, Lord Brougham & Vaux, hosted representatives of award winning organizations at the Hilton Birmingham Metropole Hotel.
 
 
 
  SYNERGIES Bags TOYOTA’s Prestigious Supplier Award  
 
Visakhapatnam based SYNERGIES CASTINGS LIMITED, India’s major alloy wheel manufacturer bagged Toyota’s most prestigious ‘Supplier of the Year 2009 - 2010 Runners-up’ award. Mr. Shekhar Movva, President received the award at a grand function held in Bengaluru this past week. SYNERGIES also went on to win the special ‘Zero PPM’ and ‘100% Delivery’ awards; extremely commendable given the fact that TKM has around a 100 major suppliers including over 40 MNC’s.

Mr.Shekhar Movva said, “Toyota is renowned for its exacting quality standards, and we are delighted to receive this award. It is a testament to the Company’s commitment to Excellence”. He also said, “Companywide Team work made this possible; innovation, technique, craftsmanship, meticulous planning and execution by the team enabled us to achieve perfect scores. The ‘100% Delivery’ award and the ‘Zero PPM’ award in a product category that is both structurally and aesthetically extremely demanding, have re-affirmed SYNERGIES as the leader in Alloy Wheel manufacturing in the country. We look forward to setting new milestones in times to come.”

SYNERGIES CASTINGS LIMITED is one of India’s premier non-ferrous component Company manufacturing world-class alloy wheels, aluminium castings and plastic components. An TS 16949, QS 9000, ISO 14001, JWL VIA, TUV certified Company, SYNERGIES offers solutions for Pressure Die Cast components, LPDC components of all types of aluminium cast alloys, plastics (ABS, PC+ABS, PVC, NYLON and PMMA) and assemblies.

Currently SYNERGIES supplies alloy wheels to several automobile majors like General Motors-USA, Ford-USA, Chrysler-USA, General Motors-India, Ford-India, TATA Motors, Toyota, Hyundai, and Mahindra & Mahindra amongst others.

In the picture -
Mr. Shekhar Movva, President, SYNERGIES receiving the award from Mr. H Nakagawa Managing Director, Toyota Kirloskar Motors, India.
 
     
 
 
 
 
  Orissa emerging as aluminium hub of India  
  The bauxite-rich Orissa is set to emerge as the aluminium hub in less than a decade with upward swing by increasing its volume of production. The state has more than 1,530 million tons of bauxite reserve, according a conservative estimate.

Major private players such as Vedanta Aluminium Limited (VAL) have made aggressive planning to cash in on the 2010 boom the sector is going to witness.

Despite high input costs, Vedanta Aluminium has set a target of producing 2.5 million tons of aluminium by 2012-13. The company hopes that it would make up for its daily losses once it is allowed to source bauxite from the allocated Niyamgiri mine for its 1-million-tonnee refinery at Lanjigarh in Kalahandi.

The Lanjigarh refinery – which began its operations in 2007 – is at present losing $ 90 on every ton of alumina it produces. This refinery project would feed VAL’s Jharsuguda smelter in Orissa and Balco in Chhattisgarh.

According Mr Mukesh Kumar, chief operating officer of VAL, the 500,000-tonne Jharsuguda smelter is to be ramped up to 1.75 million tons.

Source: Economic Times http://www.dailybestarticles.com/orissa-emerging-as-aluminium-hub-of-india/
 
 
 
  Super sports car now on Bahrain highways  
  The Mercedes-Benz Gullwing super sports car that pays homage to the five decades-old 300 SL that was first launched at the New York Motor Show in 1954 is now available in Bahrain.

A ceremony was held to mark the unveiling at the Al Haddad Motors showroom in Tubli. It was attended by company chairman Rasool Al Haddad, general manager Dr Ulf Ausprung, other company officials and guests.

"This highly desirable interpretation of one of the world's greatest sports cars will certainly become a classic in its own right and we have had considerable interest in the supercar since its debut at the Dubai Motor Show last December," said Dr Ausprung.

The first Mercedes-Benz with an aluminium body and chassis, the new SLS is the first vehicle independently developed by AMG and not only takes the brand into a new era, but also demonstrates considerable development expertise, the company says.

Its designers claim the new car makes for an alluring proposition with its unri-valled technology package that includes an aluminium space-frame body with Gullwing doors, the AMG 6.3-litre V8 front-mid-engine developing 571 hp peak output, 650 Nm of torque and dry sump lubrication, seven-speed double-declutch transmission in a transaxle configuration, sports suspension with aluminium double wishbones and a kerb weight of 1,620kg.

The front/rear weight distribution of 47 to 53 per cent and the vehicle's low centre of gravity are testimony to the uncompromising sports car concept. The Gullwing accelerates from 0 to 100km/h in 3.8 seconds, before going on to an electronically limited top speed of 317km/h.

The vehicle features a long bonnet and the short rear end with its extendable rear aerofoil stand for dynamism, as do the long wheelbase, the wide track and large 19 and 20-inch wheels. It is not only the gullwing doors that are reminiscent of the Mercedes-Benz 300 SL, as the wide radiator grille with its large Mercedes star, the wing-shaped cross fin and the fins on the bonnet and flanks also hark back to the legendary sports car of the 1950s.

Eyecatching features of the side view include the accented wheel arches and the pronounced shoulder line.

Dynamism and power are also communicated by the rear view of the SLS AMG. The gentle slope of the boot lid with the automatically extending aerofoil accentuates the impression of width, as do the flat LED tail lights.
The new Gullwing is available for around BD80,000.

Source: http://www.gulfweeklyworldwide.com/article.asp?Sn=7363&Article=24571
 
 
 
  NALCO ups aluminium production by 20%  
  India’s state-owned National Aluminium Co Ltd (NALCO) has produced 431,000 tonnes of aluminium in 2009-10, an increase of 19.4%, against 361,000 tonnes in 2008-09, the company said Saturday.

Its alumina refinery at Damanjodi in Koraput district has recorded the highest-ever production of 1.592 million tonnes of alumina hydrate against the previous best of 1.590 million tonnes in 2005-06, with capacity utilisation of 101.05%, NALCO said in a statement here.

The company’s bauxite mines at Panchpatmali Hills located near the refinery has produced 4.879 million tonnes of bauxite – its highest ever production- against the previous best of 4.854 million tonnes in 2005-06, with capacity utilisation of 101.64%, it said.

Despite acute coal shortage and severe power fluctuations, its captive power plant, which feeds the smelter plant at Angul, achieved the highest-ever power generation of 6,295 million units against the previous year’s 5,541 million units, up 13.6%.

NALCO also achieved the highest-ever domestic metal sale of 289,000 tonnes, surpassing the previous highest of 271,000 tonnes in 2008-09, with an increase of 6.5%, it said.

The company recorded the highest-ever metal export of 147,000 tonnes, up 78.5%, against the previous year’s export of 8.231 million tonnes.

Source: http://az-china.com/blackchinablog/?p=626
 
 
 
  Vedanta sees record production  
 
Vedanta Resources, the UK-based mining and metals major, today reported a record quarterly production of iron ore and aluminum for the fourth quarter ended March 31, 2010.

Aluminium output at record level
Aluminium production in the March quarter was a record 159,000 tonnes, a 19 per cent increase over the corresponding prior quarter. Full-year aluminium production was 533,000 tonnes, 15 per cent higher than the previous year. The increases were mainly on account of 264,000 tonnes contributed by the Jharsuguda aluminium smelter, partially offset on shut down of Balco I smelter in the first quarter.

The Balco II smelter continues to operate above its rated capacity. The company sold 956 million units of power during the quarter, compared to 435 million units sold in the corresponding quarter. This was mainly on account of surplus power from Balco I due to the shut down of aluminium operations, and from the Jharsuguda captive power plant. For the full year, 3,279 million units of power were sold, compared to 882 million units in the previous financial year.

Source: http://www.business-standard.com/india/news/vedanta-sees-record-production/391350/
 
 
 
  NALCO's aluminium production up by 19.4 per cent  
 
Bhubaneswar, April 3 : State-owned National Aluminium Co Ltd (NALCO) has produced 4.31 lakh tonnes of aluminium in 2009-10, an increase of 19.4 per cent, against 3.61 lakh tonnes in 2008-09, the company said Saturday.

Its alumina refinery at Damanjodi in Koraput district has recorded the highest-ever production of 15.92 lakh tonnes of alumina hydrate against the previous best of 15.90 lakh tonnes in 2005-06, with capacity utilisation of 101.05 per cent, NALCO said in a statement here.

The company's bauxite mines at Panchpatmali Hills located near the refinery has produced 48.79 lakh tonnes of bauxite - its highest ever production- against the previous best of 48.54 lakh tonnes in 2005-06, with capacity utilisation of 101.64 per cent, it said.

Despite acute coal shortage and severe power fluctuations, its captive power plant, which feeds the smelter plant at Angul, achieved the highest-ever power generation of 6,295 million units against the previous year's 5,541 million units, up 13.6 per cent.

NALCO also achieved the highest-ever domestic metal sale of 2.89 lakh tonnes, surpassing the previous highest of 2.71 lakh tonnes in 2008-09, with an increase of 6.5 per cent, it said.

The company recorded the highest-ever metal export of 1.47 lakh tonnes, up 78.5 per cent, against the previous year's export of 82,314 lakh tonnes.

Source: http://www.newkerala.com/news/fullnews-82977.html
 
 
 
  Alcoa's New Technology May Lower the Cost of Solar Energy  
 
The aluminum manufacturer Alcoa (AA) has partnered with the National Renewable Energy Lab (NREL) to test a new type of solar technology that it believes will lower the cost of renewable energy.

The project is being partially funded by a U.S. $2.1 million Department of Energy (DoE) grant.

Currently, solar troughs use parabola-shaped glass mirrors that are attached to a support structure made of aluminum or steel in order to concentrate sunlight onto receivers that collect the solar energy and convert it to heat.

Alcoa has replaced the glass mirrors in parabolic troughs with highly-reflective aluminum ones - integrating the mirror into a single structure in order to create a new CSP parabolic trough system.

All-aluminum parabolic troughs are estimated to reduce the price of a solar field by 20%, due to lower installation costs.

The company plans to use recycled materials to create the solar collectors.

Test results are expected by the second quarter of 2010. The system will then enter its next level of large-scale testing.

Alcoa executives say that the company plans to have its solar trough in commercial production within the next two to three years.

The company's ultimate aim is to make CSP a viable competitor in the United States.

Alcoa is known for developing sustainable solutions for its customers. Let's hope they're right about this one, too.

Source: http://seekingalpha.com/article/194771-alcoa-s-new-technology-may-lower-the-cost-of-solar-energy
 
 
 
  Aluminum Demand in China to Expand 20%, Chalco Says  
 
March 23 (Bloomberg) -- Aluminum demand in China, the biggest consumer, will expand by at least 20 percent this year as the economy extends a recovery from the worst global recession since World War II, said Aluminum Corp. of China Ltd.

Demand for the metal will be about 17 million metric tons in 2010, said Liu Xiangmin, vice president of the Beijing-based company known as Chalco. “We are bullish about China’s aluminum demand,” he said at a mining conference in Singapore.

Alcoa Inc., the largest U.S. aluminum maker, forecast on Jan. 11 that global demand for the metal will increase 10 percent this year, led by China. Aluminum prices have jumped 54 percent in the past 12 months in London as stimulus spending by the Chinese government spurred demand.

Chinese demand will be driven by increased usage from the transport industry as more high-speed rail networks are built, Liu said. “The carriages of these high speed trains are now made completely of aluminum,” he said.

Chalco, China’s largest maker of aluminum, fell 0.4 percent to close at HK$8.03 in Hong Kong trading. Three-month delivery aluminum on the London Metal Exchange fell 0.7 percent to $2,240 a ton at 4:16 p.m. Singapore time.

China’s output of the light metal may reach 17.5 million tons, leaving the country with a surplus of 500,000 tons, which is the “normal” excess for inventories, said Liu.

Shanghai Inventories
Inventories monitored by the Shanghai Futures Exchange stood at 394,328 tons last week, the highest level since at least 2003.

State-owned parent Aluminum Corp of China, known as Chinalco, is looking to expand its aluminum, copper and rare metals businesses, Liu also said.

“Chinalco is very willing to be part of overseas resources projects,” Liu said when asked about investments in Mongolia, declining to elaborate further.

Chinalco is in talks with Rio Tinto Group about the Oyu Tolgoi copper and gold project in Mongolia, and bauxite and alumina refining in Australia, the Sydney Morning Herald reported. Both companies last week agreed to jointly develop the Simandou iron ore project in Guinea.

Source: http://www.businessweek.com/news/2010-03-23/aluminum-demand-in-china-to-expand-20-chalco-says-update1-.html
 
 
 
  Vedanta may spin off aluminium project  
 
MUMBAI: Vedanta Resources — the mining major owned by London-based tycoon Anil Agarwal — is likely to demerge a large aluminium project in Orissa into a separate entity to help the conglomerate get a better valuationfor the aluminium business.

London-listed Vedanta has hired Morgan Stanley, Credit Suisse and JP Morgan Cazenove to put together a plan that would result — if approved by shareholders and creditors — in Vedanta Aluminium, the subsidiary which has operations in Orissa, being listed on NSE and BSE. Bharat Aluminium, or Balco, another aluminium company in the Vedanta fold, is not part of this plan, since the government owns 49% of it, said people familiar with the development. This is the second major corporate restructuring proposal that Vedanta has planned in two years. It had to go back on the earlier proposal — a complicated plan which proposed the unbundling of its aluminium, zinc, copper and mining businesses — due to the liquidity crisis and opposition from institutional shareholders. Vedanta Resources declined to comment for this story.

The people familiar with the matter said Vedanta wanted to make its Indian business — which are currently consolidated under Sterlite Industries which directly makes copper and holds stakes in companies smelting aluminium and zinc — easier for investors to understand. If the plan is approved by shareholders and regulators, Sterlite will end up as primarily a maker of copper, zinc and lead while the bulk of the aluminium business will be with the new listed company, Vedanta Aluminium.

Both entities, Sterlite and Vedanta Aluminium, will be majority owned by the London-based parent, Vedanta Resources.

Vedanta Aluminium is 70% owned by Vedanta Resources and the rest is with Sterlite Industries.

The details of the listing plan are not available, but logically there are three ways in which Vedanta Aluminium can be listed. The company could list through an initial public offer, or IPO, in which new shares would be issued, or the owners could divest their stake. The third option is to issue new shares to existing shareholders of Sterlite on a proportionate basis by valuing the contribution of the aluminium business. Shareholders, other than the owners, have to own 10% in all listed Indian companies, and that number will go up to 25% in the new fiscal starting April 1.

Apart from shareholder approval, the demerger proposal would also require clearance from a high court, which could take about three months.

The demerger proposal comes at a time when Vedanta Aluminium’s mining project in Niyamgiri in Orissa has come under regulatory glare for alleged environmental and human rights transgressions with organisations, such as the UK-based Amnesty International and Survival, alleging that the company hasn’t involved the local populace in the project, despite the fact that the project could displace them.

This narrative — popular among sections of non-governmental organisations, or NGOs, — has been strongly denied by both Vedanta and the Orissa government. Both say that the mining project, currently undertaken jointly by Vedanta and the state government-owned Orissa Mining Corporation, has not violated any Act.

The demerger proposal for Vedanta Aluminium doesn’t include Bharat Aluminium, or Balco, as the Indian government owns 49% in it. Sterlite acquired a 51% stake in Balco through a divestment programme in 2001. Any consolidation of Balco into the new aluminium business would happen only if the government sells its stake. Sterlite and the government have so far not been able to agree on a price.

While Balco makes about 350,000 tonne of aluminium at its smelter in Korba, Vedanta Aluminium plans to put together an integrated aluminium operation in Orissa which would consist of a 1.75-million-tonne aluminium smelter at Jharsuguda, 5-million-tonne alumina refinery that will convert the bauxite proposed to be mined at Niyamgiri into alumina and a captive power plant of 1,215 megawatts, as the entire conversion process is done through electricity.

On completion, Vedanta Aluminium, along with Balco, will catapult the Vedanta Group into the world’s fourth-largest aluminium player, behind Rusal of Russia, Alcoa of US and Chalco of China.

The valuations for Vedanta Aluminium, once the Orissa project is complete, could touch $20 billion, based on the low cost of production, said analysts. Currently, since Vedanta Aluminium buys alumina — the main raw material for making aluminium — from outside, its cost of production is $1,400 per tonne, which could fall to about $1,000 per tonne, once the Niyamgiri mining project takes off.

Globally, the lowest cost of production — at $1,300 per tonne — is that of China’s Chalco.

But it is far from clear if Vedanta will get a mining licence in Niyamgiri anytime in the near future or ever. On Friday, the government’s forest advisory committee, or FAC, submitted a lengthy report on the Vedanta project.

While the project found no major violations of environmental norms, it said the local tribal population, which is classified as a ‘primitive tribal group’, were in no position to benefit from the project. Further, the report calls for the proper implementation of a central Act — called the Forest Produce Act — in Niyamgiri. The environment ministry is likely to refer this to the tribal affairs ministry.

Source: http://article.wn.com/view/2010/03/15/Vedanta_may_spin_off_aluminium_project/
 
 
 
  Hindalco’s Novelis Sees Aluminum Demand Rising (Update1)  
 
March 9 (Bloomberg) -- Novelis Inc., the U.S.-based aluminum unit of India’s Hindalco Industries Ltd., sees global demand for the industrial metal rising about 4 percent annually in the next five years, President Philip Martens said.

The strongest growth, of about 6 percent to 10 percent annually, will come from Asia, followed by 7 percent to 8 percent increases in South America, Martens said yesterday in a telephone interview. North American demand may increase 1 percent to 3 percent annually, followed by Europe, which will see gains of 1 percent or less, he said.

“We’re beginning to see an increase in demand in what we call industrial products, it’s really electronic consumer durables,” Martens, 49, said in an interview from Novelis headquarters in Atlanta. “Anything that requires an aluminum carrier for stability, light weight and other factors, we do see demand primarily coming out of Asia. Most of the products are produced there and shipped worldwide.”

Novelis is seeing the strongest demand growth for metal used in products such as flat-screen televisions, laptop computers, gaming stations, cell phones and cameras, Martens said. Aluminum for delivery in three months has increased 72 percent in the past year to $2,231 a ton on the London Metal Exchange, driven by demand from China.

Hindalco, India’s largest aluminum maker, acquired Novelis in 2007 for $6 billion, two years after it was spun off by Canada’s Alcan Inc. in 2005. Novelis had $10.2 billion in sales last year, 52 percent of which came from sales of aluminum used for beverage cans. Novelis has 12,000 employees in 11 countries.

The growth in global aluminum demand should be adequate to absorb the large inventories monitored by the LME without depressing prices, Martens said. Aluminum inventory now monitored by the exchange is 4.54 million tons.

“There is still quite a bit of inventory there,” Martens said. “I think the people who own the inventory are going to be smart and will meter it out over time as demand starts to pick up. Nobody is going to rush to dump inventory on the market.”

Source:http://www.businessweek.com/news/2010-03-08/hindalco-s-novelis-sees-aluminum-demand-rising-update1-.html
 
 
 
  Market Complex built by Vedanta at Lanjigarh inaugurated  
 
A modern market complex built by Vedanta Aluminium Limited was inaugurated at Lanjigarh by Kalahandi District Collector R.S. Gopalan today.

There are 16 stalls in the newly constructed building and this will help in economic self-reliance for local unemployed youths in Lanjigarh area, Vedanta Aluminium Limited said in a press release.

Srimati Majhi, Chairperson of Lanjigarh Block and Mukesh Kumar, Chief Operating Officer of Vedanta Aluminium Limited (VAL), Lanjigarh were present on the occasion.

Addressing the gathering, Gopalan welcomed Vedanta's initiatives for development of the locality.

Mukesh Kumar informed that the initiative was a part of Vedanta's constant effort for creating income generation opportunity for youths. The market complex will provide employment opportunity for 16 youths, he added.

The new market complex is constructed with all modern facilities, including water and electricity.

This will be handed over to Lanjigarh Gram Panchayat, which will be responsible for its management hereafter.

After inaugurating the market complex, the District Collector also inaugurated the new Conference Hall at Lanjigarh Block Office at Biswanathpur, the company said in the release.

Source: www.kalingatimes.com
http://www.mynews.in/News/Market_Complex_built_by_Vedanta_at_Lanjigarh_inaugurated_B244.html
 
 
 
  Alcoa Primed for Aluminum Surge  
 
Alcoa(AA), the third largest producer of aluminum in the world, may be among metal stocks best position to benefit from rebounding production and pricing for aluminum this year.

The metal averaged $1,420 per metric ton for spot delivery on the London Metal Exchange in January 2009, touched a high of $2,342.75 in January this year and is currently trading at $2,105 per ton. Alcoa, Aluminum Corporation of China(ACH), and Alumina(AWC) have already logged-in handsome gains during this rally, which saw their shares soaring 167%, 121%, and 187%, respectively.

 
 

 
 
Alcoa is preparing to handle increased aluminum demand by joining with Saudi Arabian Mining Co. (Ma'aden) in December to build a $10.8 billion aluminum complex to target the Middle East region starting 2013.

Aluminum Corp., China's largest maker of aluminum, demonstrated further confidence in the outlook for the metal by announcing plans this month to develop and operate a $1 billion smelter in Malaysia in collaboration with billionaire Syed Mokhtar Al-Bukhary. The smelter will have an initial annual production capacity of 330,000 metric tons that will eventually increase to 1.25 million tons.

After declining 14% during 2009, world aluminum production is likely to increase by 5% during 2010 to 38.5 million metric tons, according to forecasts by the Australian Bureau of Agriculture and Resource Economics (ABARE). A number of smelters that reduced output or shut down earlier are likely to restart or increase production during the year in response to the expected 8% increase in consumption.

Furthermore, ABARE forecasts an 18% increase in aluminum prices during 2010 when compared to a 34% decline last year.

Source: http://www.thestreet.com/story/10686079/alcoa-primed-for-aluminum-surge.html
 
 
 
  Hindustan Construction wins two new orders  
 
Hindustan Construction Company has received two orders from Hindalco Industries to fabricate pot superstructure and complete civil and RCC structural work for pot line for Aditya Aluminium smelter project at Lapanga in Orissa aggregating to INR 2.99 billion.

The first order involves design, engineering, procurement and fabrication of pot superstructures, the value of the contract is INR 1 billion. The project is to be completed in 19 calendar months from the date of issue of this order. The second order involves complete civil and structural work involving site grading, civil and architectural work for pot line.

The value of the contract is INR 1.99 billion. The project is to be completed in 15 calendar months from the date of issue of this order.

Source: http://steelguru.com/news/index/MTM1NDk0/Hindustan_Construction_wins_two_new_orders.html
 
 
 
  NALCO to export aluminium billets first time in a decade  
 
Bhubaneswar, March 3 (IANS) For the first time in a decade, state-owned National Aluminium Co Ltd (NALCO) Wednesday finalized a deal to export 1,800 tonnes of aluminium billets, a senior company official said.

The metal will be supplied to British metals trader LN Metals at $130 per tonne premium over the average London metal exchange cash price on a cost and freight ex-Singapore basis, the official told IANS.

NALCO, which is Asia’s largest integrated aluminium producer, will ship the billets - 300 tonnes each - in six consignments from March to August, he said.

NALCO, whose sales prices are considered as an international benchmark, had issued a tender at the end of last year for export of 300 tonnes of aluminium billets but had to scrap it due to poor response it received.

Source: http://www.thaindian.com/newsportal/business/nalco-to-export-aluminium-billets-first-time-in-a-decade_100329370.html
 
 
 
  NALCO Raises Aluminium Prices By Rs.2000 Per Tonne  
 
Bhubaneswar, March 3 – State-owned National Aluminium Co Ltd (NALCO) has increased prices of all its products by Rs.2000 per tonne, a senior company official said Wednesday.

‘We have increased the price of all our aluminium products by two thousand rupees after aluminium gained in London metal exchange’, the official told IANS.

The billet price was, however, increased only by Rs 1500 per tonne, he said.

NALCO products include aluminium ingots, sows and billets.
NALCO is Asia’s largest integrated aluminium producer and its sales prices are watched as they generally serve as an international benchmark.

Source: http://www.vamban.com/nalco-raises-aluminium-prices-by-rs-2000-per-tonne/
 
 
 
  National Aluminium Company (NALCO) plans to form three subsidiaries  
 

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/

 
 
 
  Iran's biggest aluminum plant launched  
  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&sectionid=351020102
 
 
 
  The crowded aluminium business
Hard metal
 
  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
 
 
 
  Aluminium price rise to hit car makers  
  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
 
 
 
  Apar Industries has target of Rs 190, says Rajen Shah of Angel Broking.
 
 
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
 
 
 
  Nalco eyes Rs 25,000 cr by 2020  
 

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

 
 
 
  China's Growing Gluts  
  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
 
 
 
  Orissa clears 19 projects with an investment of Rs 30,000 cr  
  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
 
 
 
  Rio Tinto Aluminium Mining Production  
  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
 
 
 
  Nalco regulates power supply to smelter on dwindling coal stock  
  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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