National Aluminium Company Signes Mining Lease for Bauxite Mines in Odisha

National Aluminium Company (NALCO) has issued a Mining Lease deed with the State Government of Odisha, on 13 June 2024. The lease covers over 697 hectares of Bauxite Mines in Pottangi Tehsil, Koraput District, projecting a mine life of 32 years. The mines have an annual production capacity of 3.5 Million tonnes and have reserves estimated at 111 Million tonnes. After obtaining the required statutory clearances, the mined Bauxite would be transported to the NALCO refinery at Damanjodi through an Overland Conveyer of 18.5 KMS. 

About the company:

National Aluminium Company Limited (NALCO) is an Indian public-sector undertaking which incorporated in 1981. The company has integrated and diversified operations in mining, metal, and power, and is one of the largest bauxite-alumina-aluminium-power complexes in the country. The functions include bauxite mining, alumina refining, aluminium smelting and casting, power generation, and rail and port operations. With the Ministry of Mines as its administrator, the government of India holds a total of 51.28% equity stake in NALCO. The company is a Schedule “A” Navratna CPSE and has continuously earned profits for the past 36 years. It is one of the leading foreign exchange-earning CPSEs in the country. The company holds a unique position as the lowest-cost producer of Bauxite and Aluminium in the World in 2022. 

Company’s financials and stocks:

The company’s net profit in Q4FY24 soared by 94.65%YoY to Rs. 1,015.83 Cr. Revenue from operations stood at Rs. 3579.05 Cr, down by 2.51%YoY. The company rose by 1.69% to open at Rs.189.65 after the news of the lease agreement came out. 

Conclusion:

With this expansion, NALCO has aimed to strengthen its position in the Aluminium Industry and optimize production efficiency to meet the growing demands for Aluminium and capitalize on its market opportunities.

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