Intraday on Tuesday, Nalco share price settled above 8 % at Rs. 58.60.
Vedanta is permitted to buy alumina from state-owned rival, Nalco. The Government at the Centre has asked the mines ministry PSU to consider selling alumina, which it exports, to Vedanta.
Though both the firms have refineries and smelters in Orissa, Nalco also has captive bauxite mines. Vedanta’s last attempts at buying alumina, the intermediary in the manufacture of the metal have been strongly supported by Nalco. Any perceived softening of this stand has been met with strong resistance from Nalco’s unions.
The development will bring relief to Anil Agarwal’s Vedanta which lately announced it would invest Rs 15,000 -20,000 crore to ramp up production for the coming years in order to produce 2mt (or 20 lakh tonnes) of the metal at its smelter in Jharsuguda. Vedanta’s refinery in Kalahandi district, continues to run on bauxite sourced from other states and imports. Lately, metal prices that have been on a steady rise and it is predicted to do so in 2017. Thus, it makes its smelting business worth betting on.
Previously this month, Mines Minister Piyush Goyal, during a visit to Bhubaneshwar for the ‘Make in Odisha’ conclave, had cited his shock that Nalco would rather export alumina than allow for its conversion within the country and put up with “bullying by vested interests”. He felt that Nalco, after so many years in the business and with captive mines, produced half the metal that some of its private sector competitors were producing. It produces 22.7lakh tonne of alumina, of this it consumes 9 lakh tonne to make 4.6 lakh tonnes of aluminium from its smelter in Angul.
Nalco share price was trading at Rs. 59.50, touching the day’s high and low at Rs. 59.50 and Rs. 58.60.
Nalco is one of the top 500 performing stocks for this quarter as identified by Dynamic Levels.
For further details, refer to Nalco share price history.
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