NALCO contemplating new 0.5m tonne aluminium smelter in Andhra Pradesh

State-owned National Aluminium Company Ltd (NALCO) is contemplating a new 0.5 million tonne smelter in Andhra Pradesh to convert all of its expanded alumina capacity into aluminium, and will not export alumina after the expansion, its CMD BP Singh said.

NALCO’s alumina production capacity is currently 2.1 million tonnes per annum and will go up to 3.1 million tonnes with the commissioning of its new refinery by FY28.

The company presently exports about 0.13 million tonnes of alumina, but with the vision of the ministry, the aluminium major aims to produce value-added aluminium from its entire alumina capacity.

Singh, speaking on the sidelines of a roadshow for Angul Aluminium industrial park, said that with the Andhra Pradesh smelter, NALCO can use 100 per cent of the expanded alumina capacity of 3.1 million tonnes for its own aluminium production.

The company is targeting aluminium capacity of about 1.5 million tonnes.

“Land is not yet visible. We are holding talks with the state government. Once that comes, it will be announced,” he said.

NALCO’s current smelter capacity is 0.46 million tonnes per annum. In September this year, the company signed a technology licensing agreement with the UAE’s Emirates Global Aluminium (EGA) to use its DX+ Ultra smelting technology for a 0.5 million tonne per annum brownfield expansion at Angul in Odisha.

The company has announced a capital expenditure of Rs 25,000 crore till 2031. The Andhra Pradesh project would be over and above this outlay, Singh said.

A 0.5 million tonne smelter requires an investment of about Rs 18,000 crore and 1,000 MW of power, which would cost another Rs 11,000 crore, he said.

NALCO has also engaged a consultant to work out a product strategy, including for aerospace and other specialised applications, Singh said.