Vedanta said on Thursday that on account of collapse in aluminium prices and lack of availability of bauxite from Odisha, the company had to opt for a gradual closure of its Lanjigarh facility in the state.
It said in a BSE filing, “While we continue to do our best to sustain the operations, we are severely constrained by this excessive cost burden on our Lanjigarh operations, but seem to be left with no choice to implement a gradual closure.”
Aluminium prices globally have collapsed in the past few months and the current indications are that this trend will continue, added the filing.
“Our Lanjigarh operations have additionally been affected by the non-availability of bauxite from within the state of Odisha. As a result, our cost of production is significantly higher and is impacting the viability of our Lanjigarh operations,” Vedanta said.