National Aluminium Company Limited (NALCO), a Navratna CPSE under the Ministry of Mines, has reportedly signed a mining lease deed with the State Government of Odisha. The mines are located in Pottangi Tehsil, Koraput District, and cover an area of 697.979 hectares.
The bauxite mines, with their estimated reserves of 111 million tonnes and a mine life of 32 years, are a testament to NALCO's long-term vision and commitment to growth, expected to annually produce 3.5 million tonnes of bauxite.
The mines will become operational once the remaining statutory clearances are obtained. The bauxite excavated at the mines will be transported to NALCO's refinery at Damanjodi through an 18.5-kilometre overland conveyor.
Through this lease, NALCO secures a steady supply of bauxite for its existing refinery, creates certainty for future expansions, and strengthens its position in the aluminium industry.
The lease signing on June 13 led to a 5 per cent surge in shares the next day. At 12:45 PM, NALCO's shares traded at INR 194.10 on the National Stock Exchange (NSE).
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