FUNCTIONALITIES OF NALCO

Submitted by, RAMESH.P 3511110918

M.B.A

DECLARATION
I, Ramesh hereby declare that the project report submitted by me entitled, FUNCTIONALITIES OF NALCO is the record of original work done by me. No part of the content of this report has been submitted to any institution/university for the award of any other degree. Previous work in this field has been duly acknowledged as and when they have been referred.

DATE PLACE

: : :

SIGNATURE OF STUDENT

ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any would be incomplete without mentioning the names of people who made it possible; whose constant guidance and encouragement crowns all efforts with success. We express our profound gratitude to Mrs. Dr. Jayshree Suresh, Dean, Management, SRM University.

School

of

We express our sincere thanks to our internal guide Mr. Pradeep for helping us to come out with this project a successful one. We owe gratitude to our lecturers of School of Management of SRM University for following us to carry out this project. We also thank our teaching and non teaching staffs who have supported us in making this project successful.

INDEX CONTENTS
Nalco Bauxite mines Alumina refinery Zeolite-A Captive power plant Aluminium smelter Rolled products unit Port facilities HR Mission Marketing Common measure for environmental management Special measure for environmental management

PAGE
1 6 10 12 19 21 28 31 33 34 35 36

Pollution control Waste utilisation Safety policy Training and development Major achivements

37 39 40 41 44

COMPANY PROFILE
HISTORY OF NALCO:

The story of NALCO is deep routed in the bound and benevolence of being mother earth and in the indomitable spirit of man. The years of unseen and unsung quest of prospectus in the hostile wilder leads to a momentous discovery of over one thousand million ton bauxite reserve in 1975. The country is pushed up to the 5th rank in the world resources graph, with a total estimated reserve of 2900 million ton. The government of India on 28th march 1978 authorizes aluminium pechinery of France to prepare feasibility report on industrial exploitation of bauxite for establishment of an integerated aluminium complex. Feasibility study focus on Panchpatmali, 30km east of Koraput in Orissa and 130km north of Vizag port, containing the single largest deposit of 310 million ton of bauxite of unquestionable potential.

In may 1980, Bharat Aluminium Company Limited the forerunner in public sector puts forth the Orissa aluminium complex proposal to the government of India. The government takes the investment decision on 1st Nov 1980. Thus, NALCO truly and national venture to take the country forwarding the world aluminium market, a unique product of judicious deliberation and prudent planning gets incorporated on 7th Jan 1981. On 9th Jan 1981 the newly founded NALCO signs an agreement of collaboration for latest technology and basic engineering with aluminium pechinery to set up Asias largest integrated aluminium complex.

NALCO established unique landmark in the project management in Indian industry in logistic and multiplication site. The complete firm reliability of project of financing was another hallmark. The total capital cost of Rs.2408 crore was partly financed by a Rs.1119 crore equivalent Eurodollar loan raised through a consortium of international bank and the balance of Rs.1289 crore coming in from the government of India plan funds. NALCO takes the bold initiatives to enter the export market, gets LME registration for its product acquires ISO certification units pre pays overseas debts receives awards, recognition and accolades for continuously improved performance on all fronts.

NALCO
National Aluminium Company is a government of India project conceived to explore and utilize the abundant bauxites in the district of Koraput during 1979-1980 and grow the economy for the betterment of the nation and to earn foreign currency. With a strong management and conviction this has created the following units: 1. Bauxites mines Panchpatmali 2. Alumina refinery Damanjodi 3. Captive power plant Angul 4. Alumina smelter Angul 5. Rolled products unit Angul 6. Port facilities Visakhapatnam And it has established a corporate office at Bhubaneswar to provide good management network. This has a very good track record for smooth management and profitable operation. It has created a history of continuous profitability in the bad market condition.

VISION:
To be a reputed company in the metals and energy sectors.

MISSION:
To achieve growth in business with global competiting edge providing satisfaction to the customers, employees, share holders and community at large.

OBJECTIVES:
To have a global presence and earn foreign exchange. To maintain leadership in domestic market. To maximize return on investment. To develop a strong R&D base and increase business development activities. To maximize internal customer satisfaction. To foster high standard of health, safety and environment friendly products. To maximize capacity utilisation. To optimize operational efficiency and productivity. To maintain highest international standards of excellence in product quality, cost efficiency and customer services.

BAUXITE MINES

A fully mechanized open cast mine of 48,00,000TPA on the Panchpatmali hills of Koraput district of Orissa is in operation since Nov 1985. It serves feed stock of alumina refinery at Damanjodi located 16km downhill. The transportation is done through 14.6km single flight,multi curve,cable belt conveyor of 1800 capacity. The mining capacity is being expanded to 63,00,000TPA. The NALCO project made a significant positive impact on tribal life by way of provide direct and indirect employment, service and support oppurtunities in order to expected to bring economic development for local population.

The project in these districts will be required to undertake special tribal development programs to take care of health, education and communication suitable livelihood of the tribal living around these bauxite bearing areas.

SALIENT FEAUTURES:
Area of deposit : 16sq.km Resources : 310 million tons Ore quality : Alumina 45% silica 2% Mineralogy : Over 90% gibbsite Ore burden : 3meter (avg) Ore thickness : 14meter (avg)

ALUMINA REFINERY

The 15,75,000TPA energy efficient Alumina refinery, having three parallel streams of equal capacity located in the valley of Damanjodi since Sep 1986. The refinery provides alumina to the companys smelter at Angul and exports balance alumina to overseas markets through vizag port. Presently the capacity is being expanded to 21,00,000 TPA. NALCO received central government approval to the mine bauxite for its proposal alumina refinery in Vizag 20 months ago. With the approval NALCO would be able to mine an estimated deposits of 85mt of bauxite reserves in guide of GK Veedhi mandal in Visakha agency and Katamraju Konda in East Godavari district.

SALIENT FEATURES:
Atmospheric pressure digestion process. Pre digestion and inter stage cooling for higher productivity. Co-generation of 3x18.5 MW power by use of back pressure turbine in steam generation plant. Advance red mud disposal system. Recycling of waste water.

ZEOLITE-A PLANT

The Zeolite-A plant of the NALCO set up at Damanjodi, Orissa is ready for trial production this month. The capacity plant is 10,000 tonnes per year detergent grade. It is based on Sodium aluminate liquor as the main feed stock gives the company a rare distinction of becoming as the worlds only Zeolite-A plant of this kind. Zeolite-A is echo friendly and is a substitute to sodium tri polly phosphate which is currently used as a builder material in detergent in domestic market. NALCO foresees a roaring market for oversees. It is also pursuing with the ministry of environment for introduction of legislation for banning STPP which is a water pollutant. It softens the wash water by reducing calcium and magnesium concentration. It itself is stable under all

washing condition thus ensures maximum builder efficiency during the complete wash process. It increases efficiency of bleaching agents and supports foam suppressing action on soaps. Zeolite-A can be included in heavy duty laundry liquids and super concentrates give important environmental and cost benefits in terms of reduced total chemical usage and lower demand for packaging and energy both in processing and transportation. The plant opens up new avenues for setting up of a whole range of aluminium silicate products, catering to various application frontiers.

USES:
COMMERCIAL AND DOMESTIC: Zeolites are widely used as ion exchange beds in domestic and commercial water purification, softening, and other application. In chemistry zeolite are used in separate molecules and they can be analysed. Zeolite are potential of providing precise and specific separation of gases including removal of H2O, CO2, SO2 from low grade natural gas streams. The true potential to improve the handling of such gases in this manner remains unknown.

PETROCHEMICAL INDUSTRY: Synthetic zeolites are widely used as catalyst in the petrochemical industry for instance in fluid catalytic cracking and hydro cracking. The hydrogen form of zeolite are powerful solid state acids, can facilitate a host of acid catalysts reaction such as isomerisation, alkylation, and cracking. Catalytic cracking uses reactor and a regenerator. Feed is injected into hot fluidized catalyst where large gas oil molecules are broken into smaller gasoline molecules and olefins. Then the hot regenerated catalyst is then circulated back to the reactor to complete its cycle. NUCLEAR INDUSTRY: Zeolites used in advanced reprocessing methods, where there micro porous ability to capture some ions while allowing others to pass freely allow many fission products to be effectively removed from nuclear waste and permanently trapped. Equally important are the mineral properties of zeolite. Additionally once they loaded with trapped fission products the zeolite waste combination can be hot pressed into and extremely durable ceramic form closing pores and trapping the waste in a solid stone block.

HEATING AND REFRIGENERATION: Zeolites can be used as solar thermal collectors and adsorption refrigeration. Their high heat of adsorption and ability of hydrate while maintaining structural stability is exploited. This exothermic reaction when transitioning from a dehydrated to a hydrated form make natural zeolite useful in harvesting waste heat and solar heat energy. DETERGENTS: The largest single use of zeolite is the global laundry detergent market. This amounted to 1.44million tons per year of anhydrous zeolite in 1992. CONSTRUCTION: Synthetic zeolite is also used as a additive in the production process of warm mix asphalt concrete. It helps in decreasing the temperature level during manufacture and lying of asphalt concrete, resulting in lower consumption of fossil fuels, releasing less carbon dioxide and vapours. When adding to pozzolan it can reduce chloride and helps moderate water content while allowing for slower drying which improves break strength.

GEMSTONE: Thomsonite one of the rarer zeolite minerals have been collected as gemstones from a serious of lava flows along lake superior to a lesser degree in Michigan usa. These have concentric rings in combination of colours black, white, orange, pink and red. VACCUM PUMPING: Zeolites can be used as a molecular sieve in crysorption style vaccum pump. MEDICAL: It is used for the development of biochemical and biomedical application. Quicklot brand homeostatic agent, which is used to stop severe bleeding, contains a calcium loaded from of zeolite and used as a nutritional supplements for a dietery supplements. AGRICULTURE: In agriculture it is used as a soil treatment. It provides a source of slowly released potassium. It act as water moderant in which they absorb weight in water and slowly release it under water plant demand.

ANIMAL HUSBANDRY: It have been used in animal nutrition mainly to perform improve traits and also tested found to be physicochemical properties in prevention of ammonia defects. It improve feed conversion reduce airborne ammonia of 80%act as mycotin binder and improve bone density. AQUARIUM KEEPING: It marketed by a pet stores for use of a filter additive in aquariums. It absorbs ammonia and other nitrogenous compound. Zeolite filtration is used in some marine aquarium to keep nutrient concentreation for the benefit of corals adapted to nutrients depleted waters. Zeolite is a effective ammonia filter, but must be used with some care especially with delicate tropical corals that are sensitive to water chemistry and temperature.

CAPTIVE POWER PLANT

A captive unit is a business unit of a company functioning offshore as an entity of its own while retaining the work and close operational tie ups within the parent company. Captive generating plant means a power plant set up by any person to generate electricity primarily for his own use and included a power plant set up by any cooperative society or association of persons for generating electricity for use of members of such association.

SALIENT FEATURES:
Micro processor based burner management system for optimum thermal efficiency. Computer controlled data acquisition system for online monitoring Automating turbine run up system Specially designed barrel type high pressure turbine Electrostatic precipitators with advanced intelligent controllers. Wet disposals of ash.

ALUMINIUM SMELTER How aluminium is produced? STAGE-1:

CONVERTING BAUXITE TO ALUMINA
STEP 1: CRUSHING AND GRINDING Alumina recovery begins by passing the bauxite through screens to sort it by size. It is then crushed to produce relatively uniformly sized material. The ore is then fed into large grinding mills and mixed with a caustic soda solution at high temperature and pressure. The grinding mill rotates like a huge drum while steel rods rolling around loose inside the mill grind the ore to an even finer consistency. The process is a lot like a kitchen blender only much slower and much larger. The material finally discharged from the mill is called slurry. STEP 2: DIGESTING The slurry is pumped to a digester where the chemical reaction to dissolve the alumina takes place. In the digester the slurry under 50 pounds per square inch pressure is heated to 300 Fahrenheit (145 Celsius). It remains in the digester under those conditions from 30 minutes to several hours. More caustic soda is added to

dissolve aluminium containing compounds in the slurry. Undesirable compounds either dont dissolve in the caustic soda, or combine with other compounds to create a scale on equipment which must be periodically cleaned. Because all of this takes place in a pressure cooker, the slurry is pumped into a series of flash tanks to reduce the pressure and heat before it is transferred into settling tanks. STEP 3: SETTLING: Settling is achieved primarily by using gravity, although some chemicals are added to aid the process. Just as a glass of sugar water with fine sand suspended in it will separate out over time, the impurities in the slurry things like sand and iron and other trace element that do not dissolve will eventually settle to the bottom. The liquor at the top of the tank is now directed through a series of filters. After washing to recover alumina and caustic soda, the remaining red mud is pumped into large storage ponds where it is dried by evaporation. The giant sized filters consists of leaves big cloth filters over steel frames and remove much of the remaining solids in the liquor. The material caught by the filter is known as filter cake and is washed to remove alumina and caustic soda. The filtered liquor sodium aluminates solution is then cooled and pumped to the precipitators.

STEP 4: PRECIPITATION: Imagine a tank as a six storey building. Now imagine row after row of those tanks called precipitators. The clear sodium aluminates from the settling and filtering operations are pumped into these precipitators. Fine particles of alumina seed crystals are added to start the precipitation of pure alumina particles as the liquor cools. Alumina crystals begin to grow around the seeds, and then settle to the bottom of the tank where they are removed and transferred to thickening tanks. Finally it is filtered again then transferred by conveyor to the calcinations kilns. STEP 5: CALCINATION: Calcinations is a heating process to remove the chemically combined water from the alumina hydrate. Thats why, once the hydrated alumina is added, it is referred to as anhydrous alumina. anhydrous means without water. From the precipitation, the hydrate is filtered and washed to rinse away impurities and remove moisture. A continuous conveyor system delivers the hydrate into the calcining kiln. The calcining kiln is brick lined inside and gas fired to the temperature of 2000 F or 1100C. It slowly rotates and is mounted on a tilted foundation which allows the alumina to move through it to cooling equipment.

The result is a white powder- pure alumina. The caustic soda is returned to the beginning of the process and used again.

STAGE-2:
CONVERTING ALUMINA TO ALUMINIUM
SMELTING: In 1886, the two 22year old scientists on opposite side of atlantic, Charles Hall and L.T.Heroult made the same discovery of molten cryolite could be used to dissolve alumina and the resulting chemical reaction would produce metallic aluminium. The Hall-Heroult process takes place in a large carbon or graphite lined steel container called a reduction pot. In most plants the pots are lined up in long rows called POTLINES. The process requires a use of direct current instead of alternating current. The electric voltage used in a typical reduction pot is 5.25volt but the ampere is very high near to 100,00 to 150,000 ampere or more.When the electric current are passes to mixture, the carbon of anode combines with oxygen in the alumina. Alumina is formed at about 900 C, but once formed has a melting point of 660 C. Recycled metal which is then

requires 5%of the energy required. When it comes to quality, there is no difference between primary metal and recycled metal. Most smelters produce aluminium that is 99.7% pure acceptable for most application. However super aluminium 99.99% is required for some special application. The 2,30,000TPA capacities Aluminium smelter is located at Angul. The smelter plant is in operation since 1987. Presently it is expanded to 3,45,000TPA.

SALIENT FEATURES:
Advanced 180KA cell technologies Micro processor based pot regulation system Integrated facility for manufacturing carbon anodes, bus bars, anodetems etc. 2x45 ton furnaces and 2x9.5tph wire rod mills. 26,000 TPA strip casting machines. 2x1.5 ton induction furnace with a 4tph alloy ingot casting machine.

ROLLED PRODUCTS

Nalco setup a 50,000MT per annum rolled product units integrated with the smelter plant at Angul, for the production of aluminium cold rolled sheets and coils from continuous caster route, based on advanced technology FATA hunter Italy. It has facilitate to produce foil cast, fin stock, cable wrap stock, coil stock and closure stock for the variety of end users. Along with the plant has the facilities for analysis thro optimal emission spectrometer, fully computerized tensile testing machine, hydrogen analyser, combined with an overall closed vigil on process and all round quality system standard input to fininshed product conforming to world class standards.

PORT FACILITIES

A port is a location on a coast or shore containing one or more harbours where ships can dock and transfer people or cargo to or from land. Since ports throughout history handled every kind of traffic, support and storage facilities very widely may extend for miles, and dominate the local economy. On the inner harbour of Vizag port of bay of Bengal, NALCO has established mechanized storage and ship handling for exporting alumina in bulk and importing caustic soda. NALCO has three tanks in the port of Vizag with capacity for 10,000tons of caustic soda.

SALIENT FEATURES:
Alumina reception: 48x53 ton of pay load wagons Ship loading rate: 2200tph Alumina storage: 3x25000tons These facilities have been upgraded to handle higher volumes of exports For export of alumina and import of caustic soda lye. Capacity to handle ships upto 35000DWT.

HR MISSION
To create a learning and knowledge based organisation through continuous innovation evaluation and realignment HR practices with the business strategies, and to attract nuture and retain talent. To inculate a spirit of creativity quest for learning to create a responsive and competent work force and inspiring and motivational organisational climate.

MARKETING
ALUMINA AND CHEMICALS:
A quantity of 9,09,081MT of Alumina and 424MT of spe exported to various overseas. Buyers and 26,220MT of alumina/hydrate in the domestic market. ALUMINIUM: The company achieved highest ever total metal sale highest ever domestic sale and export metal sale. Faridabad stock yards was reopened and silvassa stock yards during the year besides having regular sales from other Bhiwandi, Jaipur, Kolkatta, Vizag and Bangalore.

SPECIAL MEASURE TAKEN ENVIRONMENTAL MANAGEMENT

FOR

Detailed studies for EIA and EMP at all units and expansion Eco genetic resources survey at Panchpatmali mines Vegetation survey around Damanjodi Biological monitoring of fluoride around smelter to assess the impact on vegetation and population Scientific green belt development around all units Socio-economic development and attitudinal survey at Damanjodi Industrial hygiene survey in all units Risk analysis and disaster management units.

POLLUTION CONTROL
1.Mines: Periphery barrier of 15m width having green cover around mines Garland drains and drainage control Dust suppression at source and sprinkling water Total overburden excavated with top soil used for reclamation. 2.Alumina refinery: Highly efficient at calciners and steam generation plant. Multisage washing and red mud and its storage in specially designed pond Recycling of waste water. 3.Captive power plant: Ash pond with zero discharge and recycling of waste water. Efficient burner management to reduce emission of carbon monoxide. 4.Smelter: Specially designed preservation system for spent fortliness Hooding of pots and adsorption of fluorine gas.

WASTE UTLISATION Red Mud:

Fibre polymer composition successfully developed Soil conditioners/fertilizers synthesized in lab Ferrite cement developed in lab scale Fly ash: Extraction of beta alumina carried out in lab scale. Fly ash bricks/blocks granite tiles and ceramic products have been developed Experimental use of fly ash in plantation and agricultural field,demonstrating better yield. Exploring the possibility of back filling of abandoned coal mines by fly ash. Biotechnology application of microbes for fly ash amelioration and their utilisation in agriculture and wasteland development.

SAFETY POLICY
To give highest priority to safety in selection of plants and equipments erection and commissioning activities. To develop operating manuals for each process with safety provision duly highlighted To strictly adhere to the safety related laws rules and procedures framed by the govt and to take appropriate action in case of violation. To identify and eliminate risk related process by carrying out safety audits. To ensure and prepare and update disaster management strategies and organize mock drills to keep the concerned personnel in preparedness. To give priority to occupational health of its employees. To continuously strive for improvement in safety performances.

TRAINING AND DEVELOPMENT

Training objectives: Achieve systematic integration of training with the organisation mission Stimulate constructive intraction with the employees and perspective to the organisation Establish a distinctive work culture for the organisation. Training set-up: Keeping in view the location of the production unit the need for providing specialised technical training and the company overall management development policies there are three distinct training set ups: 1. Training institute at Angul 2. Training institute at Damanjodi 3. HRD center for excellence, Bhubaneswar. The training institute are well equipped with latest audio visual training aids, lecture halls, workshops, model rooms, drawing rooms, lab, library and auditorium.

TRAINING SYSTEMS
The total spectrum of training has been classified into seven major sectors. 1. Contractual training on technological know-how 2. Functional specialisation and refresher training within and outside the organisation 3. Advanced management training for Sr.Executives at specialised institutes in India and abroad 4. Management development programme, Induction and orientation training in-house. 5. Training of the trainees, ie) graduate engineers,management trainees, operative trainees, land displaced trainees and apprentices under the act. 6. Supervisory development programme in-house 7. Workmen development programmes in-house. MANAGEMENT DEVELOPMENT PHILOSOPHY To upgrade skills,abilities,capacities of managers to handle broader assignments. To be able to move towards releasing the organisational need for succession,promotion and better performance. To help the managers to use more effectively the companys existing resources. To develop the managers thro problem of business.

MAJOR ACHIEVEMENTS
AWARDS First mines safety awards Capexil export award LME registration Star trading house Alumina refinery Smelter plant Captive power plant Bauxite mines Best exporters award Rajiv Gandhi memorial national award Environment management certification to ISO Five technologies of NALCO received united nation intellectual property Special safety award by directorate of factories and boilers Environment protection award by institute of ecology and environment, New Delhi Environment management certification to ISO YEAR Mar 98 1988-99(12 times) May 89 Jan 92 Nov 94 Feb 95 Dec 95 Jan 96 Nov 94 Jul 96 Sep 96 May 2000 Mar 97 Dec 97

Dec 97

Best occupational service award to damanjodi unit All india industrial promotion independence gaurav award Selected for gem granite environment award for the year 1997-98 by the federation of Indian mineral industries Selected for social service for the year 1997-98 Honoured with united nation world intellectual property award

Mar 98 May 98 Jul 98

Jul 98