'Faster mining nods key to meet '30 aluminium goals'

New Delhi: Speedier approvals for mining and local recycling mandates are needed to achieve the aluminium goals set by the government for 2030, industry representatives and sector watchers said.

The aluminium vision document released last week aims for India to achieve 50 million tonnes per annum (MTPA) bauxite production by FY30 and 150 MTPA by FY47. This is the first time India has put out a comprehensive target.

"It sets the stage for long-term planning, full value chain integration," Satish Pai, managing director at Hindalco Industries, told ET.


The country's bauxite production has remained almost flat over the past decade with production of 22-24 mtpa, while aluminium production has almost doubled to cross 4 mtpa.

Domestic consumption of aluminium is expected to more than double to 9-10 mtpa by 2030 and grow manifold to 28-30 mtpa by 2047.

"Having domestic availability of critical raw material like bauxite will be essential to ensure we meet this requirement, else it may act as a bottleneck," said Rajiv Kumar, CEO, Vedanta Aluminium.

According to Kumar, achieving these goals require accelerated expansion of mines to significantly scale up mining operations across resource-rich states like Odisha, Chhattisgarh and Andhra Pradesh.

"Bauxite blocks which are under exploration/development stage must be catalysed through streamlined clearances," he said, adding that despite 4.9 billion tonnes (BnT) in resources, only 13% is in the reserve category.

The vision projects an accelerated exploration programme for proving 4.9 BnT of resources and 1 BnT of incremental proven reserves by FY30.

Kumar insists a mission-mode task force must drive exploration.

Sector watchers say reforms like the composite licence are promising, but they need to be backed by consistent policies and investor confidence.

"Fast-tracking the auction of new mining blocks and upgrading existing operations with modern equipment are essential first steps," said Abhimanyu Rai, managing director, PwC India.

Stagnating bauxite production but zooming aluminium demand has forced the country to ramp up scrap imports for recycling.