Vedanta Aluminium has achieved its highest-ever cast metal production of 2.456 kt in FY2026, representing a 1% year-on-year increase from 2.422 kt in FY2025. The company also recorded calcined alumina production of 2.916 kt, up 48% Y-o-Y from 1.975 kt in the previous year. According to the company's latest annual report, this milestone reflects continued focus on operational excellence, efficiency enhancements, and sustainable growth in aluminium production. The ramp-up at Lanjigarh remains on track with achievement of exit run rate of 4 MTPA in March 2026.
The Niyamgiri bauxite mining project faces renewed opposition as Vedanta pushes for immediate reopening despite tribal resistance. On October 26, hundreds of villagers, including many Adivasi women, marched through Muniguda demanding release of activists Lada Sikaka and Dr Randall Sequeira, who were arrested 10 days earlier for participating in protests against Vedanta's mining operations. According to reports, over a hundred Dalit and Adivasis have been arrested since anti-mining resistance began in 2023, with activists like Lingaraj Azad still in jail since March 25 and Hiramal Naik since August 28. The Cuttack High Court dismissed Vedanta's petition on October 1, ruling that the company could not revive agreements terminated in September 2015, forcing Vedanta to purchase market-rate bauxite at an additional ₹5,600 crore cost.
Vedanta Aluminium Metal Ltd has secured long-pending consent to operate its Sijimali bauxite mine in Odisha in September, with production scheduled to begin this financial year targeting 1 million tonnes of output. According to reports from Mint, the production is expected to rise to 5-6 million tonnes in FY28. The mine is expected to replace imported bauxite and generate savings of about $25 per tonne, as stated by chief financial officer Anup Agarwal during the company's September-quarter earnings call. The Sijimali bauxite block has 9 MTPA capacity with all critical statutory, land, and infrastructure actions being pursued in parallel, remaining firmly on track for operationalisation as per committed timelines.
Vedanta has made significant progress in securing captive coal supply for its aluminium operations through multiple projects. The Jamkhani Coal Mine, operationalised in November 2022, is the first ever greenfield private coal mine in Odisha with 2.6 MTPA annual capacity. The Kuraloi (A) North Coal Block has achieved 89% project completion and is the closest coal mine to the Jharsuguda Plant, while the Ghogharpalli Coal Block has 60% project completion and is positioned to provide the highest volume at the lowest cost among all Vedanta Coal Mines. The company plans to operationalise captive coal blocks of Radhikapur (West) (6 MTPA), Kuraloi (A) North (8 MTPA), and Ghogharpalli (20 MTPA), ensuring 100% coal security for its aluminium business.
Vedanta's aluminium operations delivered strong financial results with revenue of ₹65,847 crore in FY2026, up 13% Y-o-Y, supported by higher LME prices and net effective premium. EBITDA reached ₹25,502 crore, up 43% Y-o-Y, majorly due to higher metal realisations and cost reduction. However, the company faces significant legal challenges with the ₹5,600 crore demand from OMCL for past dues and higher future procurement prices, while the Mines and Minerals Amendment Act 2026 has eased mining lease acquisition, potentially benefiting Vedanta's ₹1 lakh crore investment plans across mining, refining and downstream sectors. The company aims to increase its captive bauxite contribution from around 40% currently to 75% by the end of FY27.
