Balco, a part of Anil Agarwal-led Vedanta Ltd, on Monday said that it has started the procedure to shut down its aluminium rolling business in Chhattisgarh — a move that will see 1,000 people losing jobs.

In August, the aluminium manufacturer had announced its decision to shut down the rolling mill in Korba (Chhattisgarh) on account of “steep fall” in the prices of the metal besides dumping from China and falling margins.

“Balco has begun the official procedure to close down its Sheet Rolling Division and Foundry at Korba. The company has issued the information to the secretary, labour ministry, the government of Chhattisgarh, as well as the BSE and NSE,” the company said in a statement.

Mining conglomerate Vedanta, formerly known as Sesa Sterlite, holds 51 per cent stake in Bharat Aluminium Company (Balco), while the remaining is held by the government.

It produces about 30,000 tonnes per annum of rolled products like aluminium sheets and coils.

On reasons behind the shutdown, Balco chief executive officer Ramesh Nair said, “The closure of the rolling mill is in the backdrop of a crash in global aluminium prices and the prohibitive cost of coal to run our power plants.”