Nalco to foray into critical minerals in India, says chairman Singh

Critical minerals used in a diverse set of industries ranging from EVs to military drones.

National Aluminium Company (Nalco) plans to diversify its business by foraying into critical minerals, chairman and managing director of mines ministry's enterprise Brijendra Pratap Singh has told Moneycontrol.

"Currently, Nalco, exclusively, is not in the business of critical minerals. However, going forward, we want to diversify in that sector and are looking at getting some exploration rights in India. Besides, we will also participate in the government's auctions for critical minerals blocks as and when they happen," Singh said.

Critical minerals, which includes rare earth metals, are used in a diverse set of industries ranging from EVs to military drones. China has a near-monopoly on super-strong magnets made from these metals and its curbs on their supply has hit auto and electronics industries among other.

At present, Nalco is engaged in exploring and mining critical minerals overseas through Khanij Bidesh India Ltd (Kabil), a joint venture of CPSEs in which Nalco has a 40 percent stake and Hindustan Copper Ltd, and Mineral Exploration Corporation Ltd 30 percent each.

Kabil’s mandate is to identify, acquire, and develop critical and strategic minerals such as lithium, cobalt, and others from overseas sources to secure India’s long-term needs.

It has already obtained exploration rights for lithium blocks in Argentina and signed agreements with Australia to evaluate projects.

Also read: After Kandla, L&T to build 1.8 million tonne green ammonia facility at Paradip port

On the impact of tariffs imposed by the United States, Singh said Nalco exports won’t be affected, as they mostly serve the Middle East region. He, however, said the availability of alumina in the Indian market has risen, creating pressure in the domestic market due to surplus supplies.

Nalco will invest in green alumina by expanding its existing 200 MW renewable energy (wind) capacity.

“By 2030, we are aiming that at least 30 percent of our total power requirement will come from green energy. For that, we will use two routes – setting up our own renewable energy parks to assess (for) which we are appointing a consultant and signing power purchase agreements for green energy,” he said.

Singh said the company plans to invest Rs 30,000 crore to set up a aluminium smelter and an associated 1 GW coal-based power plant over the next five years.

“We will allocate about Rs 18,000 crore for establishing the proposed smelter in Odisha. The project would be financed through a mix of debt and internal resources. Another Rs 12,000 crore has been earmarked for building a coal-based power plant, for which the company is in discussions with Coal India and NTPC,” he said.

Nalco is also looking to acquire new bauxite and coal mines to strengthen raw material security.