US$50.3 million
Operating profit

805 kt
Alumina production

533 kt
Aluminium production

410 kt
Aluminium
domestic sales

Production Performance
Aluminium production in FY 2010 was a record 533 kt, an increase of 15%. This increase is primarily due to the increase in production from the new 250 ktpa Jharsuguda aluminium smelter, although partially offset by the shut-down of Korba I smelter in Q1. The Korba II smelter continues to operate above its full capacity.

The 250 ktpa smelter at Jharsuguda is operating close to its full capacity. Progressive commissioning of balance pots to achieve 500 ktpa smelter capacity is under way. During the second half of April 2010, the production at smelter was disrupted as a result of a power failure. Necessary remedial measures are being taken.

All nine units of the 1,215 MW CPP are now operational. Surplus power is currently being sold in the wholesale market on spot basis. The 1.4 mtpa Alumina refinery at Lanjigarh has been fully commissioned and produced 762 kt in FY 2010. Currently, bauxite feed for this refinery is being sourced internally from BALCO's mines and externally from bauxite mines in central and eastern India.

Unit Costs
Unit cost of production at our BALCO Plant II was US$1,534 per tonne for FY 2010, 5.5% lower than the unit cost of US$1,623 per tonne in FY 2009. Smelting costs at BALCO Plant II were marginally higher at US$862 per tonne in FY 2010 compared to US$859 per tonne in FY 2009. Operational efficiencies and savings in procurement costs of carbon and other raw materials being more than off-set by the fixed costs of BALCO I of around US$77 per tonne, being absorbed in the BALCO II smelter costs.

Sales
Our domestic aluminium sales at 410 kt in FY 2010 were up 16% year on year benefitting from a 10% growth in aluminium consumption in India. Profitability was also improved due to higher premiums charged and a 9% increase in sales of value added products such as rods and rolled products driven by sustained robust growth in the power sector.

Financial Performance
EBITDA for FY 2010 was US$154.9 million, 13% lower than FY 2009. This was primarily due to a 16% decrease in LME prices, which was partially off-set by lower operating costs and higher volumes and premium. Operating profit was lower at US$50.3 million, primarily as a result of higher depreciation for the Jharsuguda smelter following the commencement of commercial production during the year.