ALUMINIUM

ESG Update

Occupational health and safety

We report that there has been 1 Business Partner fatality case in the Aluminium sector. We had a total of 22 LTIs leading to an LTIFR of 0.21 & TRIFR of 0.70.

Summarising below the key initiatives that were driven at the units to promote a safety-first culture at the workplace and beyond:

Jharsuguda

• VPI Safety Improvements: To restrict vehicle-pedestrian interaction, 33 km of pedestrian pathways with hand railing have been completed. Additionally, a 2 wheeler parking facility has been developed outside the plant premises for 2,500+ vehicles.
• Safety Engagement with Family: More than 200 Business Partner families were engaged through the Suraksha Milap/Bandhan Programme to honour Business Partner workers by visiting their homes as positive reinforcement for improving safety culture.
• Suraksha Lahar is a focussed safety awareness initiative aimed at reinforcing safe behaviours across the organisation by creating continuous engagement, dialogue, and leadership involvement. As part of this initiative, a structured approach was adopted to strengthen the Behaviour Based Safety (BBS) by actively involving five women leaders to drive safety conversations on five critical BBS topics, using the TCC model. Total 14 counselling sessions have been conducted by the assigned leaders so far.
• The HSFS Library provides a centralised platform for easy access to safety standards, guidelines, procedures, and reference materials, ensuring timely and consistent information for all. Jeevan, the AI-powered chatbot, complements the library by offering quick, intuitive responses to HSFS-related queries, enabling faster decision-making and improved accessibility to critical safety information Lanjigarh.
• HMV Simulator: Technologically advanced training system designed to help drivers learn and practice heavy vehicle operation in a safe, controlled, and realistic virtual environment to improve safety, vehicle control, and hazard response skills.
• Surakshya Neeti SOP/SMP Mobile App: The app brings all Standard Operating and Maintenance Procedures to employees’ fingertips, enabling instant access anytime, anywhere, supporting efficiency, accuracy, and safer operations in the field.
• Right to Refuse Mobile App: Empowers the workforce to report unsafe work conditions and formally refuse hazardous tasks, promoting a strong safety culture and proactive risk management.
• Solar-powered CCTV surveillance camera for critical jobs: Enables real-time remote monitoring and live audio communication for immediate supervision, improving safety and operational control.

BALCO

• Suraksha Pahal: BALCO Management directly engaged with Line Supervisors to enhance workplace risk perception, expectations, and safety accountability.
• Safety Steward Initiative: 70 Safety Champions were nominated, leading to 1,173 safety observations and 71 Toolbox Talks, promoting continuous safety dialogues and risk identification thus strengthening shop floor ownership and proactive safety engagement.
• Suraksha Prahari conducted at BALCO engaging 500 supervisors to improve risk perception and involvement of shopfloor leadership in safety.
• Structural integrity strengthened & reinforced for risk reduction at Cast house and Foundry.
• Dark hour Visible Felt Leadership to increase leadership visibility on the shop floors during night shift.
• Safety Improvements (Vehicle Pedestrian Interaction): To restrict vehicle-pedestrian interaction, 15 km of pedestrian pathways with hand-railing have been completed in FY 2025-26.
• Installation of ergonomic seats in technological vehicles for driver fatigue management and Advanced driver assistance system for monitoring.
• Strengthened 100% Online work permit system across BALCO.

Mines

• Development of One-Way Haul Roads for HEMM along with separate LMV roads throughout the Mine for prevention of LMVs & HEMM interaction.
• AI-integrated Drone is being used for Blasting Zone clearance & surveillance leading to enhanced blasting safety.
• Development of Empty Truck Parking yard to safely manage despatches.

Environment

During the year, Jharsuguda recycled 13.35% of the water consumed, while BALCO and Lanjigarh recycled 17.50% and 30.26% respectively. The fresh water consumption at Jharsuguda and BALCO stand at 52.20 million m³ and 30.19 million m³ respectively, while fresh water consumption at Lanjigarh is at 11.62 million m³.

In line with Vedanta’s de-carbonisation plan, at BALCO and Lanjigarh, we have taken initiatives to co-fire biomass in the boiler, with defined safety measures, to reduce GHG emissions from the power plants. Furthermore, Jharsuguda has deployed 119 Lithium-ion forklifts, making it India’s largest fleet of electric forklifts at a single location, resulting in 4,465 tCO₂e/annum GHG reduction, along with reduction in diesel consumption by 1.67 million litres per year. Similarly, BALCO’s Transition of 22 diesel-operated forklifts to electric vehicles resulted in 600 tCO₂e/annum GHG reduction.

Under our Green product initiative, this year, we sold the highest-ever volume of low-carbon aluminium at ~91 kt.

In the current fiscal year, Jharsuguda reduced its GHG emission intensity by 15.69% compared to the FY 2020-21 baseline and had consumed 229 MW of Green Power. Also, Jharsuguda’s fly ash utilisation stands at more than 100% of its generation. The GHG emission intensity at BALCO is at 16.02 tCO₂/T compared to 16.43 tCO₂/T of FY 2020-21 baseline. BALCO consumed 62 MW of Green Power and co-fired 1,882 tonnes of Biomass. GHG emission intensity at Lanjigarh is at 1.05 tCO₂/T of alumina compared to 1.09 tCO₂/T of alumina of FY 2020-21 baseline.

Key Highlights

• Vedanta Aluminium published the 1^st TNFD Report, adopting the globally recognised LEAP (Locate, Evaluate, Assess, Prepare) framework to identify and manage nature-related risks and opportunities
• Vedanta Aluminium released three ESG disclosure reports for FY 2024-25 – 6^th Sustainable Development Report, inaugural Taskforce on Nature-related Financial Disclosures (TNFD) Report, and Taskforce on Climate-related Financial Disclosures (TCFD) Report
• Vedanta Aluminium has been ranked 2^nd in the world in the S&P Global Corporate Sustainability Assessment (CSA) 2025, a prestigious benchmark, among companies worldwide. In the latest assessment, Vedanta Aluminium has achieved its highest-ever score, securing 84 out of 100, a notable improvement from last year’s score of 77. We have secured the 2nd rank for the 3^rd consecutive year, underscoring our consistent performance and strengthened position across key sustainability parameters
• Out of over 9,200 companies across 59 industries that were assessed for this year’s Sustainability Yearbook, only 848 are Yearbook Members. Vedanta Aluminium Limited has been included in the S&&P Global Sustainability Yearbook 2026 and has reached the Top decile for the first time

Key Milestones

Jharsuguda

• A Milestone in Sustainability | 1200th Fly Ash Rake Despatched
• Vedanta Limited Jharsuguda despatched more than 1,200 fly ash rakes and has successfully shipped approx. 4.8 million tonnes of fly ash to leading cement manufacturers, empowering the production of eco-friendly green cement and promoting sustainable utilisation of ash (20,638 tCO₂e reduction)
• In alignment with CPCB’s guidance on methodology for the disposal of SPL refractory, Jharsuguda has launched its first-ever SPL Refractory Disposal Project, with more than 140 kt disposed to Common Hazardous Waste Treatment, Storage, & Disposal Facility (CHWTSDF) in FY 2025-26

BALCO

• BALCO despatched more than 3 LMT fly ash to leading cement manufacturers promoting sustainable utilisation of ash. Balco is adding capability to despatch fly ash through rakes.
• BALCO has despatched more than 20 kt of SPL refractory & 19 kt of SBD to CHWTSDF in FY 2025-26
• Noise barrier system installation at the 1,200 MW cooling tower reduced noise from 78 dB to 62 dB
• 50 KW Solar panels installed at BALCO Ash Dykes for – recycling water through solar-powered pumps
• The launch of Restora, Low-carbon product portfolio at Bharat Aluminium Company Limited (BALCO) plant in Korba, Chhattisgarh
• A total of 67 water structures have been created (21 Farm Ponds, 1 Community Pond and 45 Lining Ponds) with a combined waterholding capacity of ~23,733.375 cum
• Installation of 100 water-sprinklers completed at Ash Dykes for fugitive emission control
• Installation of solar-powered remote-operated cameras at Ash Dykes for monitoring of seepage water
• Installation of digital piezometers at ash dykes for real-time monitoring of ash dyke stability

Jamkhani

• Jamkhani Coal Mine has established a Miyawaki forest using a selection of native species. This approach aims to create a dense, rapidly growing forest that enhances biodiversity and restores the local ecosystem. More than 85,000 saplings have been planted till date in 5.5 Ha area by Miyawaki method for habitat restoration
• Installation of Wastewater treatment facilities like ETP & STP to reuse the treated water and maintain ZERO liquid discharge. Further, wheel wash system has been installed at the exit area with recirculation system for outgoing vehicles
• Initiated Project NIRMAL with installation of 7 Solar Borewells with purifier, 20 water purifiers, 20 bio-toilets, & 225 solar lights near the villages of Jamkhani coal mine benefiting 5,000+ community members including school students

Lanjigarh

• Vedanta Limited Lanjigarh has been certified as single-use plastic-free by the Confederation of Indian Industry (CII) under the provisions of CII Plastic Use Protocol. This recognition is yet another reflection of our unwavering commitment to environmental stewardship and collective action
• 61 water structures completed, under the Integrated watershed project, increasing the water recharge potential by 11 lakhs cubic metre
• Life Cycle Assessment of Alumina: Completed study to quantify impacts, identify hotspots, support sustainability reporting, and guide carbon footprint reduction strategies
• Mo Gachha, Mo Parivar: Planted 1,00,000 fruit trees, boosting biodiversity, food security, livelihoods, and offsetting 1.5 lakh tonnes of carbon emissions
• Red mud utilisation project Red-to-Green (R2G) Initiative: Guided by ICAR, converted 2.7 million MT of red mud into green zones with eucalyptus plantations and soil remediation, achieving commercial closure, scientific validation, and sustainable agricultural potential through structured continuation

Alumina refinery: Lanjigarh

At Lanjigarh, Calcined alumina production for the year was at 2.92 million tonnes, up 48% Y-o-Y. The ramp-up remains on track with achievement of exit run rate of 4 MTPA in March.

Aluminium smelters

Cumulative Aluminium production for the year was the highest-ever at 2,456 kt, up 1% Y-o-Y. This milestone reflects our continued focus on operational excellence, efficiency enhancements, and sustainable growth in Aluminium production.

Coal Security

We continue to focus on the long-term security of coal supply to our thermal power plants at competitive prices. We have plans in place to operationalise our captive coal blocks of Radhikapur (West) (6 MTPA), Kuraloi (A) North (8 MTPA) and Ghogharpalli (20 MTPA). Additionally, Exploration has been completed for the Barra coal block and it is now under project phase. Post commencement, these captive mines will ensure 100% coal security for our Aluminium business. In the interim, we also have the option to continue our participation in linkage coal auctions to secure additional coal at competitive rates.

The Aluminium market in FY 2025-26 saw record price movements despite a weak start in Q1 FY 2025-26 on account of inventory buildup before the tariffs and demand weakness globally. Additionally, the announcement of reciprocal tariffs and an additional 25% tariffs on Aluminium increased the effective tax rate to 50% for Aluminium imports into the US. Global sentiment for Aluminium was bearish across Q1 with looming uncertainty arising from the tariffs. However, as the year passed by, a lot of bilateral trade deals between the US and other countries including China cooled off uncertainty and with Interest rate cuts in the latter half of 2025 in the US, demand levers improved globally with US being the largest economy and export hub.

However, a major reason for the price rally was on account of supply tightness due to China reaching its production cap of 45 MnT as well as closures of multiple smelters due to operational mishaps or terminating power contracts.

The weakening dollar also seemed to be a trigger for a broader metals rally with massive increase seen in copper prices on account of a market deficit. Aluminium prices also increased in tandem with Aluminium being a substitute for the metal.

LME prices which had fallen to levels of US$ 2,300/tonne in Apr-25 reached the highs of US$ 3,300/tonne in Jan-26. However, in the absence of fresh market drivers, prices reverted to previous support levels of around US$ 3,000/t. However, in March, heightened geopolitical developments involving the United States, Israel, and Iran led to increased regional tensions and temporary disruptions to smelting operations, resulting in an uptick in prices. The rally in prices has been augmented by operational disruptions at EGA and Alba smelters on 28 March. The year concluded with an LME price of US$ 3,585/t on 31 March, with a month average of US$ 3,370/t.

The global demand for aluminium is anticipated to increase at a CAGR of ~3% from 2025 to 2030, with primary demand growing at 2% vis-à-vis secondary demand at 6%.

Cost of production (CoP) of alumina was at US$ 372 per tonne, up 5% Y-o-Y, majorly due to lower domestic bauxite mix.

CoP of molten aluminium for FY 2025-26 was at US$ 1,752 per tonne, down 5% Y-o-Y, majorly due to reduction in Alumina and Power costs on account of higher captive Alumina mix, softened market alumina prices, & lower coal costs. This was offset to an extent by higher CPC prices & other processing cost.

Strategic priorities and outlook

1. Increasing production volume of aluminium,
2. Reducing and delinking production cost from external through backward integration, and
3. Maximising share of Value-Added Products (VAP) in our mix.

• Aluminium Volume: Through BALCO’s Growth Project, the company is well positioned to add 435 KTPA of smelter capacity, increasing the total capacity at Korba to 1 MTPA. This expansion is supported by additional downstream capacities, including Rolled Products, Primary Foundry Alloy, Wire Rod, and Billet. BALCO has also marked a key milestone with the first metal production from India’s largest 525 kA smelter.

Efforts continue towards achieving higher operational performance along with increased volume delivery through debottlenecking and planned projects.

• Backward Integration: Lanjigarh refinery has successfully commissioned its expansion from 2 to 5 MTPA, producing its first alumina from Train‑1 in March 2024 and from Train-2 in October 2025. With this, the overall capacity has increased from 2 to 5 MTPA, and full ramp-up is expected to be completed by FY 2026-27. We are also on track for commissioning the Sijimali Bauxite mine within H1 FY 2026‑27.

Additionally, we are also focussed on operationalisation of our coal mines, as per committed timelines, to ensure volume security for our captive power plants.

• Increased VAP: Jharsuguda and BALCO are currently expanding their VAP capacities to secure enhanced product margins.
• Sustainability: Safety and well-being of all our stakeholders, reduction of our carbon footprint, increased production of Low Carbon Green Aluminium (Restora, Restora Ultra), improved workforce diversity, and promotion of circular economy.
• Operational Excellence: Continual improvement in operational parameters.
• Asset Optimisation: Achieving >100% capacity utilisation of assets through implementation and adherence to our structured reliability and asset management programme.
• Quality: We are continually striving towards our goal of Zero product defects and customer complaints.