NALCO to boost smelting capacity, eyes rare earth diversification through Khanij Bidesh

National Aluminium Company Ltd (NALCO) is set to expand its operations with fresh investments and a sharper focus on diversification, CMD Brijendra Pratap Singh told Business Today.

Singh said the company is adding 5 lakh tonnes of aluminium smelting capacity along with a new power plant to support the expansion. “Our capex plans will be funded largely through internal reserves, with some part through debt,” he said.

On the trade front, Singh noted that higher global tariffs have increased prices, but NALCO is looking at the United Kingdom and other markets as new destinations for its aluminium exports. “If relations between China and the US improve, it will be a good development for the entire sector,” he added.

Domestic demand continues to stay strong, with most of NALCO’s output being absorbed within India itself. Singh also said the recent GST reforms will not have much impact on the aluminium industry.

NALCO also plans to raise its stake in Khanij Bidesh India Ltd (KABIL), the joint venture for sourcing critical minerals overseas. “KABIL is a good opportunity for diversification, and if the right opportunity comes, we will also look at rare earth magnets,” Singh said.

The state-owned aluminium producer recently announced an investment of about ₹30,000 crore over the next five years for its expansion projects, including the new smelter in Odisha.