Hindalco consolidates its position, takes full stake in Utkal Alumina

India’s top aluminium maker, Hindalco Industries has acquired 45% stake in Utkal Alumina International from Canada-based Alcan Inc, world’s third largest aluminium company, to raise its stake to 100% in the export-oriented company.

The Rs.4400 crore JV was established in 1992 to set up a 1.5 million tonne alumina refinery in Orissa but the project failed to kickstart due to opposition from local residents citing reason of displacement and environmental concerns.

Earlier Anglo-Australian mining company Rio Tinto, which has made a $38 billion bid for Alcan was believed to be interested in continuing as a stakeholder in the project.

Alcan decided to pull out citing reasons of limited decision making powers in the project. Though it will continue to be the technology provider to the project.

Currently, work on the Utkal alumina project is in progress and detailed engineering for mines is expected to be complete by March 2009.

With this deal, Hindalco would further enhance its ambition of becoming one of the world’s five largest producers.