The state of Kerala is on the cusp of entering India's bauxite mining sector, with plans advancing to auction off what are being described as among the richest new deposits discovered in the country in three decades. Found in the Kasaragod district, the high-grade bauxite deposits are poised to provide a significant new source of raw material for India's burgeoning aluminium industry and a potential revenue windfall of INR 5,000 crore (USD 600 million) for the state.
Bauxite deposits of high quality
The Department of Mining and Geology is preparing a detailed report for the state government, where mining work can be initiated as early as next year. A key revised survey is ongoing to map the deposits carefully, making sure that the forest lands and residential areas are kept out of the mining blocks. The step would help address environmental and social issues before the auction process.
The initial mining will begin in the Narlam block in Mulleria, which is known for a rich presence of high-grade bauxite, anticipated to yield 0.21 million tonnes of high-grade bauxite and 5.14 million tonnes of lateritic ore containing aluminium minerals.
The Geological Survey of India's tests have confirmed the red rocks in Kasaragod contain 5 to 10 percent more bauxite than the national average, while In Ukinaduka and Narlat, the bauxite content reaches up to 40 to 45 percent, compared to 35 percent in other major mining states like Odisha and Maharashtra.
Also read: After Meghalaya, it is now Kerala with high-grade bauxite deposit; India truly becomes mineral-rich
Fuelling India’s aluminium growth
The discovery of these new sources comes at an opportune moment, with India's aluminium producers always seeking to book domestic bauxite volumes to fuel their giant refineries and cut imports. Earlier reports highlighted the potential of mineral blocks in Ukinaduka, Kariyath, and Narlam, reinforcing Kasaragod’s growing importance in the national mining map.
The process is being expedited under a directive by the Union Ministry of Mines. The government has engaged SBI Capital Markets as the transaction advisor to oversee the commercial auctions. It is expected that players like the Adani Group will be among those that will vie for the Kasaragod blocks.
"After mining, awareness will be raised so that no harm is caused to nature or people, and mining will be carried out in other places as well" , MC Kishore, the Mining and Geology Department's additional director, promised the public. That emphasis on community and environmental responsibility will be key. The project's success will depend on balancing economic potential with responsible practices.
The Kasaragod deposits will be a big boost to India's booming aluminium demand and industrial aspirations, particularly with the high quality of deposits. The commencement of mining operations will strengthen India’s resource security and provide long-term support to downstream industries.
Also read our exclusive report on red mud: Global Bauxite and Alumina Industry Outlook 2025
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