NALCO Launches Pilot Plants for Critical Mineral Recovery from Industrial Residues

National Aluminium Company Ltd (NALCO) has stepped up efforts to recover critical minerals and other value-added products from industrial residues, commissioning an indigenous pilot plant for processing coal fly ash and beginning work on a separate facility for bauxite residue valorisation.

NALCO CMD Brijendra Pratap Singh inaugurated the 50-kg-per-day fly ash processing pilot plant at the company's Research & Technology Centre in Bhubaneswar on August 18.

Developed by CSIR-IMMT and KIIT with support from NALCO, CSIR and the Ministry of Mines, the facility is based on a jointly patented process that can recover alumina, calcium silicate, quartz residue and an iron hydroxide residue enriched with rare earth elements, including scandium.

The company also held a groundbreaking ceremony for a pilot plant to process bauxite residue, or red mud, with the aim of recovering ferro-titanium alloy, metallic iron, and rare earth elements. NALCO said the fly ash facility is expected to produce REE concentrate for further research into mixed rare-earth recovery and separation, potentially supporting downstream value-added products.

The initiatives come as India seeks to strengthen domestic supplies of critical minerals used in permanent magnets, electric vehicles, renewable energy, electronics and defence.

For NALCO, residue recovery could also improve utilisation of by-products from its aluminium operations while creating additional value from secondary resources.

Financial performance and outlook

NALCO reported an 88% year-on-year increase in Q1 FY27 net profit to Rs 2,002.38 crore, with the results announced on July 31. Revenue from operations rose 39% YoY to Rs 5,302.38 crore, supported by higher aluminium prices and improved production and sales.

The company also reported record first-quarter performance in bauxite excavation, calcined alumina production and alumina/hydrate sales.

On the outlook, NALCO has indicated that maintaining aluminium prices above the $2,700/mt LME level would support EBITDA margins at around FY26 levels, although the company has not provided a formal FY27 EBITDA margin forecast.

NALCO and NLC India also signed a joint-venture agreement in July to develop a 1,080-MW captive power plant at Anugul, Odisha, aimed at supporting NALCO's expanding aluminium operations. The company has separately launched IA91 grade aluminium alloy ingot as part of efforts to expand its downstream product portfolio.

NALCO's FY26 performance included a record net profit of Rs 5,816 crore and revenue from operations of Rs 17,843 crore, providing a strong financial base for its ongoing expansion, energy and technology initiatives.