Hindalco secures energy supply for Indian smelter

Energy supplied to Hindalco’s Mahan aluminium smelter, India., will be secured after the acquisition of a nearby power block. Hindalco is set to secure energy supply to its Mahan, India smelter after it approved an acquisition.

The board of the Indian-headquartered aluminium manufacturer has agreed to the acquisition of EMIL Mines and Mineral Resources (EMMRL), which operates the Bandha coal block in Madhya Pradesh, located just 18.5 kilometres from the Mahan smelter.

Hindalco Industries’ Managing Director, Satish Pai, said the proposed acquisition of the Bandha coal mine aims to meet the company’s strategic objective of securing resources for the Mahan smelter.

“This coal mine has a life of around 45 years and will help build a sustainable coal supply chain in the foreseeable future,” he told investors on May 20.

The mine has an estimated 197 million tonnes of mineable coal and offers a logistical edge.

Its close proximity enables streamlined transport via rail, road, or conveyor, to ensure a cost-effective energy supply to the smelter.

Hindalco’s board gave the green light to the deal on May 20, with the transaction expected to close within six to nine months, pending regulatory approvals.

When questioned about how acquiring a coal mine would fit into its renewable energy strategy, Mr Pai said the base load for its smelters in the foreseeable future still has to come from thermal energy.

“In Mahan we are going to add 100, 200 megawatts of renewables over the coming years, but we still have to make sure that the base load is secure,” he said.

“So the way to look at it is that we will be increasing the renewable mix, but at the same time balancing it out with the base load.

“I think many people have realised that if you do not have a proper base load and just have renewables, you are going to have your grid crash on you. So that is the way we look at it.”