NALCO bets on UK market and Rs 34,600 crore Odisha expansion drive to offset US tariff threats

State-owned National Aluminium Company Limited (NALCO) has downplayed concerns over the recent tariff hike imposed by the United States, asserting that the move will not affect its business.

Instead, the company is pivoting towards the United Kingdom, a duty-free market, to bolster exports and tap into growing demand from electric vehicle and solar panel manufacturers.

The company’s Chairman-cum-Managing Director, Brijendra Pratap Singh, noted that Britain’s EV and renewable energy sectors present a lucrative avenue for aluminium exports, given their heavy reliance on the metal.

Expansion Anchored in Odisha

Singh revealed that NALCO is preparing to operationalise its Pottangi bauxite mines in the Koraput district by June next year.

Spanning nearly 698 hectares, the block has an estimated reserve of 111 million tonnes and a production capacity of 3.5 million tonnes annually. The company has earmarked Rs 1,961 crore for the project, with geo-tendering expected to be finalised by October.

At present, NALCO operates the Panchpatmali bauxite mines to feed its 2.1 million tonnes per annum (MTPA) alumina refinery at Damanjodi and its 0.46 MTPA aluminium smelter in Angul, which is backed by a 1,200 MW captive power plant.

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Rs 34,600-Crore Expansion Blueprint

Looking ahead, NALCO has drawn up an ambitious Rs 34,600 crore investment plan, targeted for completion by 2030.

This includes a Rs 5,600 crore project to add a fifth stream alumina refinery of 1 MTPA capacity at Damanjodi, an expansion of the Angul smelter at a cost of Rs 17,000 crore, and a Rs 12,000 crore captive power plant of 1,080 MW. Detailed project reports for these ventures are expected by the third quarter of FY 2025-26.

Mines Reforms Gain Momentum

NALCO’s growth plans align with the government’s push to modernise India’s mineral sector. The Parliament recently passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, aimed at liberalising the sector and encouraging investment in critical and strategic minerals.

Union Minister of Coal and Mines G. Kishan Reddy said the reforms are designed to boost domestic production and secure overseas supplies in areas where India has limited reserves.

With aluminium consumption in India projected to touch 7.5 to 8 MTPA by 2030, NALCO’s dual strategy of shielding itself from tariff shocks by focusing on the UK while aggressively expanding capacity at home positions the company well to handle any shocks from US tariffs.