Nalco eyes foray into rare earths, magnesium, chromite amid critical minerals push

State-owned Nalco is open to venturing into mining of rare earth elements (REEs) with its bid advisor conducting due diligence on domestic auctions for REEs, magnesium and chromite blocks, its CMD Brijendra Pratap Singh Monday said.

The move signals National Aluminium Company Ltd's (Nalco) diversification strategy beyond bauxite and alumina, targeting high-value critical minerals essential for electronics, defence, renewables and electric vehicles.

REEs are important for magnets in wind turbines, EV motors and missile guidance systems. India, heavily import-dependent with negligible domestic output, views REE self-reliance as key to Atmanirbhar Bharat and reducing China's 80 per cent global dominance amid US-China trade tensions.

In an interview to PTI here, the Chairman-cum-Managing Director (CMD) said the bid advisor will assess mine viability, optimal acquisition premiums and participation in upcoming auctions.

"The bid advisor will assess if we should participate in domestic auctions of REEs," Singh said.

Nalco, Singh said, is also conducting due diligence for acquiring a stake in an operational lithium mine in Australia through Khanij Bidesh India Ltd (KABIL). KABIL is a joint venture between Nalco, Hindustan Copper Ltd and Mineral Exploration and Consultancy Ltd.

All three are PSUs under Ministry of Mines. The stake purchase would ensure a minimum guaranteed offtake of lithium for import to India, bolstering domestic supply for EV batteries and renewables amid global shortage.

"The due diligence is going on," he explained. Lithium, a cornerstone of the clean energy transition, faces supply constraints with demand surging for India's EV push and net-zero goals.

Nalco, with a 40 per cent stake in KABIL, plans to potentially raise it to 50 per cent to fund overseas critical mineral acquisitions. The company, he said, has prioritised maximising volumes, cutting costs and ensuring customer satisfaction in 2026, while fast-tracking key expansion projects.

"Our first priority is to see our existing operations operate to the fullest capacities. We will maximise our volumes and reduce our costs. Customer satisfaction is one area where we have to focus -- be it quality, packaging or cost -- and align all our operations as per customer requirements," the CMD said.

On expansion plans, he said the fifth stream refinery would be commissioned in June 2026, making it the "topmost priority".

"We also target to start the Pottangi bauxite mines in June 2026," he added.

The official further outlined the next phase of expansion involving a 0.5 million tonne smelter capacity along with a 1,080 MW power plant.

National Aluminium Company Ltd, a 'Navratna' public sector undertaking, is one of country's leading integrated complexes in the aluminium value chain having bauxite mining, alumina refining, aluminium smelting including power generation and coal mines.