Bauxite ore output to rise 30% by 2010

India's production of bauxite ore, a key ingredient in aluminium manufacturing, is expected to increase 30 per cent in three years to 16 million tonnes a year fuelled by demand from both domestic and international markets.

The country, which has a recoverable reserve of 2.3 billion tonnes, produces 12.3 million tonnes of bauxite ore every year. Annual exports are around 2.3 million tonnes.

"The bulk of the metallurgical grade bauxite produced in India is consumed domestically. Leading aluminium manufacturers have captive bauxite mines. All of them have lined up expansion plans to enhance aluminium output. Bauxite production will cross 16 million tonnes by 2010," S B Chauhan, advisor to the Federation of Indian Mineral Industries, said.

Public sector giant National Aluminium Company (Nalco), Hindalco Industries of the Aditya Birla Group and Balco of Vedanta Resources are right upfront with their bauxite mining expansion plans.

"These companies have announced several greenfield bauxite mining projects in Orissa and Chhattisgarh to enhance aluminium output. Many other private players supplying metallurgical grade bauxite to local companies manufacturing aluminium-based products are also increasing their ore output," he said.

With an investment of over Rs 5,040 crore, Nalco is planning to ramp up its capacity from 4.8 million tonnes to 6.3 million tonnes and the expansion programme is scheduled to be completed by the end of next year.

The country could double bauxite production to 23 million tonnes by 2010 if the Orissa and Chhattisgarh governments speed up granting of mining leases. "Unfortunately, procedural delays and environmental issues are coming in the way of granting leases. A number of applications from various companies are still pending before the two state governments," Chauhan said.

India has the fourth largest bauxite reserves in the world. The metallurgical grade bauxite deposits are spread over Orissa, Chhattisgarh, Madhya Pradesh, Maharashtra and Andhra Pradesh, while refractory grade bauxite deposits are found in Gujarat and some parts of MP.

"In fact, bauxite mining in AP has not taken off fully due to various local issues. We are engaging various state governments on similar issues. Further delays can hamper investments in mining," he said.