Vedanta's Agarwal Regrets $8B Aluminum Investment; Aluminum Prices Hit 30-Day Low

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An expensive regret, but “Billionaire Anil Agarwal, who controls London-based Vedanta Resources Plc, said he regrets investing 500 billion rupees ($8 billion) on an aluminum complex in India that’s faced a shortage of raw materials,” reports Bloomberg.

“’I could either invest in Vedanta Aluminium or I could have bought Asarco,’ Agarwal said in an interview with Bloomberg TV India in New Delhi aired today, referring to U.S. copper miner Asarco LLC. ‘If you ask me today, I regret it.’”

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“Complex government procedures are delaying project approvals in India and impeding companies, Agarwal said. His Sesa Sterlite Ltd. (SSLT) has seen its iron-ore business slump following court-imposed mining bans in two states, while the group’s failure to obtain a mining permit for bauxite in the eastern state of Odisha has driven the aluminum unit into losses.”

“’I would have done better if I had bought Asarco,’ said Agarwal, whose net worth is calculated at $2.8 billion, according to the Bloomberg Billionaires Index. ‘It would have been a feather in my cap.’”

On Friday, November 29, the aluminum cash price fell by 1.2 percent on the LME, landing at $1,701 per metric ton and making it the day’s biggest mover. Aluminum 3-month saw its price drop on the LME 0.9 percent to a 30-day low of $1,751 per metric ton last Friday. The Indian aluminum cash price weakened by 0.9 percent.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap continues to hover for the fifth day in a row. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat. The price of Chinese aluminum bar saw little movement. The Chinese aluminum cash price remained essentially flat.