'Sterlite's Tuticorin plant closure spiked sulphuric acid prices 4-fold in 6 mon

Sterlite Copper’s Tuticorin plant closure has led to a spike in prices of phosphoric and sulphuric acids, adversely affecting the downstream chemical and fertilisers industry, according to the company’s CEO, Mr. P. Ramnath.

The Tamil Nadu government had in May ordered permanent closure of Vedanta’s Sterlite Copper unit in the state after 13 people, among protesters demanding its shutdown on environmental concerns, were killed in police firing.

“In the last six-months, prices of sulphuric acid have shot up from Rs. 3,000/tonne to Rs. 12,000/tonne, a rise of 300%, and a tonne of phosphoric acid costs Rs. 53,000 as compared to Rs. 43,000 a tonne six month earlier, a rise of 23%,” Mr. Ramnath pointed out.

“The plant met 80-90% of demand for sulphuric acid in the country and 15% of the phosphoric acid demand. The closure of our plant has led to a sharp surge in demand, driving up prices,” he added.

Mr. Ramnath said the 400,000-tpa sulphuric acid plant, which met over 30% of India’s copper demand, produced sulphuric and phosphoric acids as a by-product. The copper smelter was producing 1.2 mt of sulphuric acid annually, half of which was sold on a commercial basis; and 230,000-tonnes of phosphoric acid every year.

The sharp rise in prices will surely affect the prices of fertilisers as also industries that use copper for manufacturing a wide variety of products. “Due to the shutdown in the last six months... import of the metal has seen a surge. While premium on copper has gone up by 10-15%, the import of the metal has shot up 2.5 times to nearly 30,000 tonnes per month,” he said.

Offer to invest Rs. 100-crore for people’s welfare

In another development, Vedanta has offered before the National Green Tribunal (NGT) that it would invest Rs. 100-crore at Thoothukudi for the welfare of people, in addition to the regular social work being carried out by it under the Corporate Social Responsibility (CSR).

The submission was made by Vedanta’s counsel during the hearing on its plea challenging closure of its Sterlite copper plant. The firm told a bench headed by NGT Chairperson Justice A.K. Goel that its plea challenging closure of the plant was “maintainable” as per various provisions. The firm said there was not “enough proof” to suggest that it was affecting the health of people there.

Senior advocate, Mr. C A Sundaram, appearing for Vedanta, said their plea has merits and they have accepted the report of an independent committee, constituted by the NGT to look into the allegations of environmental pollution. The committee, headed by former Meghalaya High Court Chief Justice Tarun Agrawal, had said that no notice or opportunity of hearing was given to Vedanta before closure of the plant.

“The impugned orders cannot be sustained as it is against the principles of natural justice. No notice or opportunity of hearing was given to the appellant. The grounds mentioned in the impugned orders are not that grievous to justify permanent closure of the factory. Other issues raised also does not justify the closure of the factory even if the appellant was found to be violating the conditions/norms/directions,” the committee had said.

Senior advocate Mr. C.S. Vaidyanathan, representing the Tamil Nadu government, claimed there was no provision in the NGT Act to form the committee and even the panel has certain limits.