Malco suspends production as aluminium prices plummet
10 Dec 2008
Vedanta Resources Group company Madras Aluminium Company Ltd (Malco) has ''temporarily suspended'' aluminium production in view of the continued fall in prices of the metal.
MALCO said the decision was taken after a thorough review of the outlook for aluminium business. The alumina refinery will now operate only to cater to the other industrial requirements, it said.
''In view of the continuous fall on the London Metal Exchange aluminium prices, the company has reviewed the outlook for aluminium business and has decided to temporarily suspend the entire aluminium production with immediate effect,'' the company said in a filing with BSE.
The company's power plant will, however, continue to operate and sell power to third parties. Malco said it will review the situation in the coming months and take decisions accordingly.
Malco had last month slashed aluminium production by 60 per cent due to declining metal prices and amid the global economic slowdown.
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