NALCO explores rare earth and valuable material recovery from bauxite residue and fly ash

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NALCO is advancing pilot projects in Odisha to turn industrial residues into valuable resources, including rare earth elements, alumina, iron and titanium, strengthening India's push for critical mineral recovery and a circular economy.

National Aluminium Company Limited (NALCO) is expanding its research into ways of converting industrial waste into useful resources, with a new pilot project focused on bauxite residue, or red mud, and another facility already operating for coal fly ash.

The initiatives are being developed through collaborations with national research institutions and aim to test indigenous technologies that could eventually offer commercially viable ways of recovering valuable materials from industrial residues.

Red mud pilot targets rare earths and metals

The latest initiative involves a pilot plant for the valorisation of bauxite residue, commonly known as red mud, a major residue generated during alumina production.

NALCO held the ground-breaking ceremony for the proposed facility at its Research & Technology Centre (NRTC) in Bhubaneswar. The pilot plant will focus on recovering ferro-titanium alloy, metallic iron and rare earth elements (REEs) from red mud.

The project reflects a shift in how industrial residues are being viewed, with materials traditionally treated as waste being explored as potential secondary sources of valuable resources.

For the aluminium industry, the approach could be particularly significant as red mud contains materials that may have applications beyond its original production chain. Recovering these resources could help improve material utilisation while creating additional value from an existing industrial residue.

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Fly ash pilot targets alumina and rare earth recovery

Alongside the red mud initiative, NALCO has inaugurated an indigenous pilot plant for processing bituminous coal fly ash at its NRTC in Bhubaneswar.

The facility has a processing capacity of 50 kg per day and has been designed and established by CSIR-IMMT and KIIT, with support from NALCO, CSIR and the Ministry of Mines, Government of India.

Based on a jointly patented process developed by CSIR-IMMT and NALCO, the pilot plant is designed to recover several value-added products from fly ash.

These include alumina, calcium silicate for ceramic applications, quartz residue with potential applications in glassmaking, and an iron hydroxide residue enriched in rare earth elements, including scandium.

The facility is also expected to generate adequate quantities of REE concentrate for further research and development into mixed REE recovery and separation, potentially supporting the development of downstream value-added products.

NALCO said “Rare earth elements are critical inputs for a wide range of strategic and high-technology applications, including permanent magnets, electric mobility, renewable energy, electronics and defence. Alumina, meanwhile, is the principal feedstock for aluminium production and an important industrial raw material.”

The company added that recovering such materials from secondary resources can improve resource efficiency, supplement primary sources and unlock additional value from industrial residues.

Turning industrial residues into secondary resources

The two projects bring together two different industrial residues, bauxite residue and coal fly ash, but share the same broader objective: extracting more value from materials that would otherwise require disposal or further management.

The focus on rare earth recovery is particularly significant as these materials are increasingly important for strategic and high-technology applications. At the same time, recovering alumina from fly ash could create an additional source of a material that sits directly within the aluminium value chain.

Speaking on the initiatives, Brijendra Pratap Singh, CMD, NALCO, said the company is using research, innovation and strategic partnerships to convert industrial residues into valuable resources.

“The Company is committed to leveraging research, innovation and strategic partnerships to convert industrial residues into valuable resources. Pilot-scale validation of indigenous technologies is an important step towards developing commercially viable solutions that can strengthen resource efficiency, critical mineral security and the circular economy,” Singh said.

The initiatives also form part of NALCO's broader R&D strategy, with the company working alongside national research institutions to move indigenous technologies from research towards pilot-scale validation and potential commercialisation.

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Indigenous technology at the centre of the projects

The fly ash recovery process has been jointly developed and patented by CSIR-IMMT and NALCO, while the pilot facility has been established by CSIR-IMMT and KIIT with support from NALCO, CSIR and the Ministry of Mines.

NALCO sees pilot-scale testing as an important step towards determining whether these technologies can eventually be developed into commercially viable recovery processes.

The fly ash facility is expected to provide REE concentrate for further research into recovery and separation, supporting the development of downstream products and integrated critical mineral recovery pathways.

NALCO stated, “Through sustained R&D, strategic collaborations with premier national research institutions and pilot-scale validation of emerging technologies, NALCO is working towards integrated resource-recovery pathways aligned with national priorities on critical mineral security, circular economy and sustainable industrial development.”

By exploring both red mud and fly ash, NALCO is seeking to establish recovery pathways that could contribute to India's priorities around critical mineral security, resource efficiency and circularity.

The projects also highlight a broader opportunity for the aluminium industry: rather than viewing industrial residues solely as waste, they could increasingly be treated as secondary sources of minerals and materials with economic value.

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