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Chapter-6
6.1 The Ministry of Mines has four 9001:2000 cert i f icat ion of qual i ty
public sector undertakings (PSUs) under management, registration of products at
its a d m i n i s t r a t i v e c o n t r o l . N a London Metal Exchange, environment care
t i o n a l A l u m i n i u m C o m p a conforming to ISO 14001, low cost
n y L i m i t e d (NALCO), Hindustan operations and international customer
Copper Limited (HCL) & Bharat Gold base, NALCO enjoys the status of a Star
Mines Limited (BGML), are in the Export House and a Miniratna company.
field of mining and mineral processing, 6.4 Apart from exporting to more than 30
and Mineral E x p l o r a t i o n C o r p o r countries worldwide, the company has
a t i o n L i m i t e d (MECL) is in the stockyards in various parts of India to
field of mineral exploration. In addition, facilitate domestic marketing. With its
the Government holds 49% equity in consistent track record in capacity
Bharat Aluminium Company Ltd. utilization, technology absorption, quality
(BALCO) and 29.54% equity in assurance, export performance and posting
Hindustan Zinc Limited (HZL). The of profits, NALCO is an example of India's
performance of these undertakings mature industrial capability.
during 2005-2006 is given below.
6.5 NALCO's 48 lakhs Tonnes Per Annum
(TPA) bauxite mining, on Panchpatmali
hills of Koraput district in Orissa, is among 6.2 Incorporated in 1981, National the most sophisticated and eco-friendly Aluminium Company Limited (NALCO) is mining operations to be found worldwide. Asia 's largest integrated alumina- Highly mechanized, this opencast mining aluminium complex, comprising bauxite features geostatistics application and mining, alumina refining, aluminium computerized mine planning. The smelting and casting, power generation, transportation of ore to the alumina rail and port facilities. refinary, located downhill, is done through
a 14.6 kms long, single-flight, multi-curve, 6.3 With the technical collaboration of cable belt conveyor system.Aluminium Pechiney of France, ISO
BAUXITE MINES( A ) N A T I O N A L A L U M I N I U M
COMPANY LIMITED (NALCO)
INTRODUCTION
Performance of Public Sector and Joint Sector Companies in Mining, Mineral Processing and Exploration
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ALUMINA REFINERY
CAPTIVE POWER PLANT
PORT FACILITIES
ALUMINIUM SMELTER
merger of International Aluminium
Products Limited (IAPL), Rolled Products 6.6 One among the top ten alumina
Unit has the advantage of direct molten refineries in the world, this 15.75 lakhs
metal transfer from the smelter.TPA energy-efficient alumina refinery
utilizes time-tested Bayer process
technology of atmospheric pressure 6.8 The 960 MW Captive Thermal Power
d i g e s t i o n a t l o w t e m p e r a t u r e . Plant at Angul, close to the smelter and
Manufacturing of 26,000 TPA special grade near Talcher coalfields, is another
aluminas and hydrates as well as 10,000 showpiece in efficient and reliable power
TPA detergent grade zeolite are well generation. Besides supporting firm and
integrated with the main process streams. uninterrupted power supply to the smelter,
After meeting the consumption needs of the it is connected to the state grid for sale of
company's smelter, the balance quantity of surplus electricity.
alumina goes to international markets
through Visakhapatnam port.
6.9 NALCO has dedicated port facilities of
the inner harbour of Visakhapatnam Port 6.7 Located at Angul in Orissa, the 3.45
for bulk export of alumina and import of lakhs TPA smelter comprises three pot-
caustic soda lye. With storage facility up to lines with 240 electrolytic pot cells in each,
75,000 tonnes and ship-loading rate of 2200 along with integrated facilities for casting
tonnes per hour, this facility can reliably of ingots, sows, billets, strips and wire rods.
handle export of about one million tonnes With the acquisition and subsequent
of alumina per annum.
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Overview of NALCO'S port
Facilities at vizag port
Strip casting mill at smelter of NALCO
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Financial Performance
6.11 The financial performance of the Company during the year 2003-04, 2004-05 and
2005-06 (upto December, 2005) is given in the Table 6.2
TABLE 6.2Financial Performance of NALCO
Physical Performance
6.10 The physical performance of the company during the year 2003-04, 2004-05 and
2005-06 (upto December, 2005) is given in the Table 6.1
TABLE 6.1Physical performance of NALCO
Actual Target
2004-05 2004-05 2005-06 2005-06
2003-04 (upto (upto
Dec.’04) Dec.’o5)
#
ProductSl.
No.Unit
PRODUCTION
1. Bauxite MT* 48,16,762 48,51,726 34,22,901 34,56,243 48,00,000
2. Alumina MT* 15,56,100 15,75,000 11,73,500 11,86,600 15,75,000
3. Aluminium MT* 2,98,208 3,38,483 2,48,498 2,69,081 3,45,000
4. Net Power MU** 5,122 5,613 4,248.5 4,129 5,601
(Generation)
Sl. Details Actual Target
No. 2003-04 2004-05 2004-05 2005-06 2005-06
(upto (upto
Dec.’04) Dec.’05)#
1. Income 3324.77 4374.60 3113.27 3488.08 4182.72
2. Operating Cost 1722.33 1985.01 1430.24 1714.68 1882.72
3. Interest etc. 103.41 60.61 49.61 - -
4. Depreciation 446.27 458.71 344.42 304.88 389.45
& Amortization
5. Net Profit before Tax 1052.76 1870.27 1289.00 1468.52 1910.55
& Dividend (PBT)
6. Net Profit after Tax 737.37 1234.84 800.60 968.44 1244.03
*but before Dividend
(PAT)
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Alumina/Hydrate Aluminium Domestic Aluminium
Sales Performance1100000
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
In M
T
2003-2004 2004-2005
934874
129718
166650
2005-2006 (upto Dec. ‘05)#
663125
648787
81431
68222156230
194982
2004-2005(upto Dec. ‘04)
909081
205797
132730
Financial Performance
Income Net Profit (PAT)
3500
3000
2500
2000
1500
1000
500
0
Rs.
in
cro
re
2003-2004
737.3
7
3324.7
7
2004-2005(upto Dec. ‘04)
2004-2005
3113.2
7
3488.0
8
968.4
4
800.6
0
2005-2006(upto Dec. ‘05)#
1234.8
4
4374.6
2336.27
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Items Unit Actual Target
2003-04 2004-05 2004-05 2005-06 2005-06
(upto (upto
Dec.’04) Dec.’05)#
(A) Export
i) Alumina/Hydrate MT 934874 909081 663125 648787 865000
ii) Aluminium MT 129718 132730 81431 68222 128000
iii) Total export Rs. 1717.38* 2200.25 1454.43** 1466.65 1998.73
Earning crores
(B) Domestic Sales of MT 129718 132730 81431 68222 128000
Aluminium
Table 6.3
Sales Performance of NALCO
st stUnit Original After 1 Phase After 1 Phase
Capacities Expansion Expansion (under
(Completed) implemen tatiomn
Bauxite Mine 24,00,000 MT 48,00,000 MT 63,00,000 MT
Alumina Refinery 8,00,000 MT 15,75,000 MT 21,00,000, MT
Aluminium Smelter 2,30,000 MT 3,45,000 MT 4,60,000 MT
Power Plant 600 MW 960 MW 1200 MW
Table 6.4
Capacity of Mines, Refinery, Smelter & CPP
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Sales Performance
P O L L U T I O N C O N T R O L A N D
ENVIRONMENT.
On-Going Projects :
Expansion
?
?
Energy Conservation
?
?
?
?
Computerisation
?
?
related to Right to Information Act and
ensuring transparency in company's 6.12 The sales performance of the
activities.Company during the year 2003-04, 2004-05
and 2005-06 (upto December, 2005) is given
in the Table 6.3
6.16 During the financial year 2005-06, the
performance of the company with respect
to pollution control, safety health & 6.13 In order to strengthen its market
environment management, forest & position, NALCO has started the second
plantation activities has been satisfactory. phase expansion after the successful
The followings were the achievement:completion of the first phase. The present
All the units have applied for consent to Rs.4091 crore expansion will raise the
operate under Air & Water Act.capacity of its various segments as given in
Table 6.4.Aluminium Fluoride consumption was
reduced by 24% in Potline-III because of
new technology as compared to old 6.14 Variable frequency drive has been
potlines.installed in Anode Handling De-dusting
57,000 tonnes of ash of CPP and refinery unit to optimize the speed. Energy saving
has been utilized so far in different has been achieved. Speci f ic coal
activities like ash pond dyke rising, low consumption for the year 2005-06 (upto
l y i n g l a n d r e c l a m a t i o n , b r i c k December, 2005) could be maintained at
preparation and cement making.the level of 0.628T/T (0.622 T/T in 2004-05)
in comparison to MOU target of 0.7 T/T. 3,99,300 nos. of trees have been planted
The specific fuel oil consumption in in M&R and S&P Complexes.
calciners was reduced. Specific oil
15 Ha. mines out area have been consumption in SPP could also be reduced
planned for rehabilitation by plantation to a level of 3.905 lit/T from a level of 4.243
in this financial year.lit/T. Specific electrical consumption for
the alumina refinery dropped from a level Certification audit for all five units for
of 339.32 kwh/T to 336.06 kwh/T with O c c u p a t i o n a l H e a l t h S a f e t y
increase in consumption in Zeolite & SG Management System (OHSAS-18001)
main plant with increase in volume of have been completed successfully by
production. M/s.TUV and they have already
recommended for same.
NALCO is in process of upgrading ISO-6.15 Thrust during the financial year
14001 to 2004 version, which is likely to 2 0 0 5 - 2 0 0 6 h a s b e e n t o w a r d s
be completed by the end of this financial implementation of Enterprise Resources
year.Planning System in NALCO and
implementation of e-Governance initiatives Some modification was carried out in
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De-fluoridation plant of smelter to the facilities were supplie dregularly to
improve its performance. the user industries.
NALCO has applied for mining lease of
Utkal-E Coal Block and different studies
are in progress for preparation of EIA in 6.19 Recovery of TiO2 from Plant Sand and
order to apply for Environmental Recovery of Alumina from Partially
Clearance.Lateritised Khondalite is being carried out
To monitor fugitive emission in pot at R&D Centre in M&R Complex,
rooms one laser beam instrument has Damanjodi besides addressing to day-to-
been procured & commissioned. day process related problems.
Raising of height of red mud pond with
new gar land dra ins have been 6.20 Characterization of Baked Anode for
completed.process monitoring, determination of cell
factor for prediction of net carbon Raising of height ash pond of CPP &
consumption, performance monitoring of refinery is continuing.
pots lined with partially damaged cathode
blocks and development of indigenous tri-
metallic anode clads etc. are the R&D
6.17 DSIR, Ministry of Science & activities in the Smelter Plant, Angul for
Technology, Government of India have the reported period.
recognized both the in-house R&D units of
NALCO at M&R Complex, Damanjodi and
S&P Complex, Angul. Renewal of 6.21 The industrial relations scenario of the
extension has been granted up to 31st Company has remained by and large
March, 2006. Facilities developed at both peaceful. There have been almost no
the R&D Centers are continuously being mandays loss due to industrial relations
utilized for addressing to day to day problem.
problem solving, process & product
development, energy conservation, waste
utilization activities with emphasis on 6.22 The company has adopted the development of in-house expertise for principle of equal opportunity to the growth of indigenous technology in the women employees in the matter of Company by adopting novel innovative employment. In spite of the nature of job practices. Thrust has been laid on requirement, the company has 317 number patenting of process know-how developed of women employees at different levels and in the Company either through in-house or categor ies . Apart from providing collaborative R&D efforts.developmental and functional training
programmes to the women employees.
institutional mechanism has also been put 6.18 Special Grade Alumina pilot plant
in place to avoid sexual harassment of facilities were run to its full
women. As a mark of development in their capacity.Different products produced from
? In-house R&D Activities:
Alumina Refinery, Damanjodi
?
Smelter Plant, Angul ?
?
RESEARCH AND DEVELOPMENT
ACTIVITIES
INDUSTRIAL RELATIONS
PERSPECTIVE PLAN FOR WOMEN
WELFARE
Special Grade Alumina & Hydrate
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individual leadership, women executives of particular and weaker sections of the
the company have got a place as local people living in the periphery
c o o r d i n a t o r / m e m b e r o f n a t i o n a l area.
organizations like Women in Public Sector 2. To play a catalytic role in improving the
(WIPS). quality of life of the people living in the
p e r i p h e r a l a r e a s t h r o u g h
i m p l e m e n t a t i o n o f s y s t e m a t i c 6.23 The Presidential Directives issued
programmes of development.from time to time on reservation of SC/ST
3. To plan and implement suitable projects persons in employment have been
to improve the ecology and the scrupulously followed by the Company.
environment of peripheral areas.There are also exclusive cells constituted
for the welfare of the SC/ST employees.
The alumina and mines units of the
company are placed in the midst of a 6.25 Since the company is committed to its predominantly tribal area at Damanjodi. obligation for social sector development The 600 families, who were displaced for every year, the funds allocable for social the establishment of the projects, have sector activities of the company is 1% of since been resettled in rehabilitation the net profit of the preceding year to be colonies with provision of various undertaken during the succeeding year.The amenities. Besides, direct employment in company is also providing additional funds Nalco has been provided to 585 persons on from time to time with special approval of the basis of one able-bodied person from the Board for local area development each displaced family. works.
6.26 Peripheral Developmental Committee
has been set up at units consisting of
Government Authorities, local Member of
Parliament, member of State Legislature 6.24 Keeping in view the Government's
Assembly and senior officials of the guidelines, NALCO has been taking various
company to identify projects of peripheral steps for development of local areas
development activities and ensuring its thereby helping to and increasing the
proper implementation and monitoring.standard of living of the people living in its
6.27 During times of distress and natural periphery. The main objectives of the
calamities the company is coming forward peripheral developmental programmes are
immediately to help the needy people.The :
company has already spent Rs. 5.76 crore 1.To take special steps for ameliorating
during the last five years on this account.living conditions of the land ousts in
WELFARE MEASURES
SALIENT POINTS ON THE COMPANY'S
SOCIAL RESPONSIBILITIES
MEASURES TAKEN BY NALCOFOR
REHABILITATION AND PERIPHERAL
D E V E L O P M E N T A C T I V I T I E S
(CSR activities)
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6.28 In its pursuit of preserving the art
and culture of Orissa, Nalco in association
with the Government of Orissa, is 6.32 During the period April to November
organizing Rajarani music festival and 2005, the total world aluminium supply was
sponsoring Kalinga Mohatsav.around 21.280 million MT against the
world consumption of 21.367 million MT,
thus showing a deficit of 0.087 million MT.
The market was driven by :-6.30 As on 31.12.2005, there are 63
physically handicapped persons in 1. The overall reasonably solid US market.
employment of the company in various 2. Although the European extrusion
identified posts. Measures are being taken demand has remained poor in the recent
to achieve 3% representation in all posts months, the construction activities in
in Group C&D and in identified posts in F r a n c e & S p a i n a r e s h o w i n g
Group-A&B as per section 33 of the encouraging signs.
Persons wi th Disab i l i t i es (Equa l 3. Chinese primary demand remains very Opportunities, Protection of Rights and
strong thanks to the strong growth in Full Participation) Act 1995. semis demand and production. For the
first 10 months of the year semis
6.31 MOU Rating achieved during last production is running 26% ahead of last
three years is given in Table-6.6. year.
4. Japanese flat rolled product has been
weak over the second half of the year.
Despite positive indicators regarding
economic growth, there has so far been
little sign of any improvement in
demand. However, there has been
continued growth in demand from
automotive sector.
ALUMINIUM SURVEY
International market
EMPLOYMENT UNDER DISABILITY
ACT, 1995
MOU RATING
Table 6.6
MOU Rating of NALCO
Year Composite Grade
Score
2002-2003 1.427 Excellent.
2003-04 1.47 Excellent.
2004-05 1.43 Excellent.
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6.29 The Table 6.5 shows the employment of personnel as on 31.12.2005 in NALCO
Table 6.5
Employment of Personnel in NALCO
Group Total No. SC ST Ex- PH LDP Minority
of employees SM
Executives 1761 205 104 10 04 18 76
Including Trainees
Non-executives 5641 983 1220 37 59 1767 205
including Trainees
Total 7402 1188 1324 47 63 1985 281
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