Faster Mining Approvals Key to Meet India's 30% Aluminium Import Substitution Goal

India's aluminium industry is facing a significant hurdle: delays in mining clearances. Industry experts warn that without expediting this process, the government's ambitious goal of substituting 30% of aluminium imports by FY31 will be difficult to achieve.

The core issue lies in the lack of bauxite ore mines, the primary raw material for aluminium production. Although India holds the world's fourth-largest bauxite reserves, mining and licensing are proceeding very slowly. The state-owned National Aluminium Company (Nalco) is a prime example. They have invested in a new refinery but cannot operate it at full capacity due to a lack of stable bauxite supply.

According to officials, delays in environmental and forest clearances are the main obstacles. "Expediting the auction and clearance of bauxite blocks is crucial," said a senior official on condition of anonymity. "Without sufficient raw materials, we cannot boost domestic production and will remain dependent on imports."

Currently, India imports large quantities of bauxite, alumina, and metallurgical coke, putting pressure on its trade balance. Securing domestic raw material supply will not only help achieve self-reliance but also promote the applications of aluminium in many strategic sectors. The quality of the final products, such as aluminium sheets, also heavily relies on adherence to international standards like the ASTM B209 standard.

The industry is calling on the government to take more decisive action to remove procedural bottlenecks, ensure resource security, and facilitate the sustainable development of the aluminium sector, contributing to the nation's economic growth.

Note: This article analyzes the Indian market; figures and policies may not be applicable to other markets.

Source: The Economic Times