Vedanta to shut Lanjigarh refinery

Bhubaneswar: Anil Agarwal-led mining conglomerate Vedanta has decided to shutdown its Lanjigarh alumina refinery in Kalahandi district due to absence of bauxite linkage.

In a company release, the unit’s chief operating officer (COO) K. K. Dave said, “We ran this unit with all commitment for nearly a decade, despite heavy odds. But with the current market turmoil, which is not likely to improve soon and in absence of access to bauxite from within the State, the plant is operating with a daily loss of Rs.3 crores. Hence, we are forced to initiate the process of gradual closure.”

Dave expressed his concerns and acknowledged that the company decision is going to impact nearly 10,000 people directly and the region at large as the CSR initiatives of the company like Mid-day Meal in 187 schools and the Vedanta Lanjigarh Hospital that provides free medical treatment will get affected.

“The closure is also going to impact Vedanta’s Jharsuguda operations and it cannot be helped,” Dave said.

On the development, Abhijit Pati, CEO – Aluminium, Vedanta Limited said, “In absence of bauxite supply from Odisha, the current market dynamic has threatened our very survival. With a heavy heart, we are bound to take some steps which are going to be painful.”