Apart from initiating lithium mining operations in Argentina, the Bhubaneswar-headquartered company is also actively exploring smelting partnerships in Australia.
India’s largest integrated producer of alumina and bauxite, NALCO, is positioning itself to support the country’s push for critical mineral security—particularly lithium—through overseas ventures, Chairman & Managing Director Bijendra Pratap Singh has said.
The company has been allotted five lithium brine blocks in Argentina via Khanij Bidesh India Ltd (KABIL), and is actively exploring joint venture partnerships for refining operations in Australia.
“Non-invasive exploration has already been completed by our team. We are now in the process of appointing a PMC (project management consultant) and engaging a party for invasive exploration. This next phase will help us determine the grade and commercial viability of the lithium deposits,” Singh said during a media interaction in New Delhi on August 28.
KABIL is a joint venture between NALCO, Hindustan Copper Ltd (HCL), and Mineral Exploration and Consultancy Ltd (MECL), with NALCO holding a 40 per cent stake, HCL 30 per cent, and MECL the remaining 30 per cent.
Singh said the company aims to complete detailed exploration within two years to assess the viability of the mining blocks.
“This is a crucial step before moving to full-scale operations. The results of our invasive exploration—regarding deposit quality and quantity—are expected within the next 18-24 months and will guide our decision on launching commercial mining in Argentina.”
Outlining NALCO’s broader strategy for critical minerals, Singh said the company is considering equity investments in lithium refining operations in Australia and may increase its stake in KABIL beyond the current 40 per cent. While not directly pursuing exploration of critical minerals, NALCO is evaluating opportunities to acquire exploration rights for select domestic mines.
“While there’s no exclusive plan yet, we do intend to diversify and acquire mines both domestically and overseas if viable opportunities arise,” Singh said.
On the possibility of entering rare earths mining, Singh noted that while it currently falls under the mandate of Indian Rare Earths Ltd (IREL), NALCO would evaluate the opportunity if approached by the Ministry of Mines.
Powering Up Production
The company is also ramping up captive power production to support its upcoming aluminium smelter in Angul, given the energy-intensive nature of smelting as part of its expansion strategy. A 1,000 MW coal-based power plant is proposed in JV, with a consultant already appointed to prepare the detailed project report. NALCO is in parallel negotiations with potential partners.
“This will require an investment of ₹110-₹120 billion. We are exploring joint venture arrangements with Coal India, NTPC, and possibly others to ensure a secure coal supply, especially from Mahanadi Coalfields,” Singh said.
The smelter and power plant are targeted for commissioning by 2030.
Headquartered in Bhubaneswar, Odisha, NALCO is also the world’s lowest-cost producer of metallurgical-grade alumina and bauxite. A zero-debt company, it has a capital expenditure plan of ₹17 billion for FY2026.
On energy transition, Singh said the company aims to meet 30 per cent of its power requirements through green energy in the near term. However, a complete shift to renewables may not be feasible in the near or medium term.
“Our captive power costs around ₹3.10 per unit, whereas green energy costs exceed ₹5 per unit. That’s a significant cost differential.”
The company plans to raise the share of renewable energy in its production mix to 35 per cent by 2030. Any further scale-up will depend on green power becoming more affordable and transmission costs being brought down.
-Manish Pant