Hindalco Industries has entered into a Memorandum of Understanding (MoU) with UltraTech Cement to deliver 1.2 million metric tonnes of red mud (also known as bauxite residue) annually to UltraTech's 14 plants located across 7 states.
Hindalco is the world's first company to achieve 100% red mud utilisation across three of its refineries. Red mud generated in the alumina manufacturing process is rich in iron oxides, along with alumina, silica and alkali. The cement industry has developed the capability to process red mud as a replacement for mined minerals such as laterite and lithomarge in its process.
The MoU represents a significant sustainability initiative for both Hindalco and UltraTech. Waste of one industry being used as an input material in another is more than an example of a circular economy, it exemplifies Hindalco's sustainability-first approach to business, Hindalco Industries and UltraTech Cement said in a joint press release after market hours yesterday, 20 August 2020.
Hindalco is supplying red mud to UltraTech Cement plants where it has been proved to be an effective substitute for mined materials, successfully replacing up to 3% of clinker raw mix volume. Use of red mud reduces the cement industry's dependence on natural resources and promotes a circular economy.
Hindalco's alumina refineries are currently supplying 250,000 metric tonnes of bauxite residue to cement companies every month, making Hindalco the world's first company to have enabled such large scale commercial application of bauxite residue. In the current year, Hindalco aims to achieve 2.5 million metric tonnes of bauxite residue utilisation, which will be another global milestone.
Last year, UltraTech consumed about 15.73 million metric tonnes of industrial waste as alternate raw material and about 300,000 metric tonnes as alternative fuel in its kilns.
Shares of Hindalco Industries rose 1.12% to settle at Rs 198.90 yesterday. Shares of UltraTech Cement fell 1.13% to settle at Rs 4,148 yesterday.
UltraTech Cement is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India.
Hindalco Industries is the metals flagship company of the Aditya Birla Group. Hindalco is the world's largest aluminium rolling and recycling company, and a major player in copper. It is also one of Asia's largest producers of primary aluminium. Its wholly owned subsidiary Novelis Inc. is the world's largest producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs).
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