BMI Research projects 49 million tonnes bauxite production in India by 2021

India's bauxite production is expected to increase from 22.08 million tonnes in 2016 to 49.4 million tonnes by 2021, says a BMI Research report.

According to a BMI Research report, India's bauxite production is expected to rise from 22.08 million tonnes in 2016 to 49.4 million tonnes by 2021. Report further projects that in 2017, bauxite production would be at 26.1 million tonnes, up 18% from 2016.

"We forecast Indian bauxite production to grow from 26.1 MT in 2017 to 49.4 MT in 2021, averaging an annual growth rate of 17.5 per cent during 2017-2021, significantly higher than the annual average 3.9 per cent growth over 2012-2016," the Fitch Group company said.

Growing demand from the domestic aluminium industry and five-fold increase in mining lease area in Odisha are expected to drive this accelerated growth in India’s bauxite production.

"The Ministry of Mines increased the lease area for mining of bauxite from 10 sqkm to 50 sqkm in the state of Odisha to encourage development, and as part of the Union Budget, India reduced export duties for bauxite from 20 per cent to 15 per cent," the report said.

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Notably in 2016, the Odisha government agreed to supply bauxite to the Lanjigarh refinery of Vedanta from March 2017, through the state-owned company Odisha Mining Corporation.

The report also highlighted the flipside of bauxite mining in India that include strict environmental regulations and tribal tensions that pose a threat to bauxite mining by slowing down