Nalco to implement waste-to-wealth model using Chinese tech to ramp up profitability

National Aluminium Company Limited (Nalco), a Navratna CPSE under Ministry of Mines, is looking out to tap the waste-to-wealth model using Chinese tech for processing mineral wastes and commercialising them, which in turn would help the company boost its bottom line.

The company believes that by pursuing this out-of-the-box idea, it can recover 15 to 20 per cent of hidden alumina from its inventory of 60 million tonnes of red mud at captive bauxite deposits, located atop Panchpatmalli hills in southern Odisha’s Koraput district.

Dr. Tapan Kumar Chand, Chairman of Nalco said, “For alumina extraction technology, we are discussing with a few IITs and the Institute of Minerals and Materials Technology (IMMT), Bhubaneswar. Nalco is keen to commercialize this alumina after extraction.”

Over the years, alumina segment has driven the company’s profitability, and even today, it is believed to ramp up its bottom line. Each year, Nalco exports 1 to 1.2 million tonnes of surplus alumina which contributes 75 per cent to its Ebitda (earnings before interest, taxes, depreciation and amortisation). 

Nalco was a huge gainer when spot alumina prices soared due to US’s sanctions against UC Rusal in early April. The sharp rise in price helped the company to garner its highest ever alumina shipment price of US$718 per tonne, which is more than the company record of US$633 achieved in 2006-07 when metal sector boomed.

Dr. T.K. Chand reported, Nalco is already corresponding with some Chinese companies for firming up the technology and might have to strike collaboration with one of those companies to deploy the technology. He also commented that under the waste-to-wealth model, one of the most potentially rewarding areas would be the extraction of iron ore from red mud. The iron ore concentrates retrieved this way could find applications in steel making as well.