Industry Profile: Mining, as the primary sector of economics, is significant for development, not for employment but for utilization of natural resources. Minerals constitute the backbone of the economic growth of any nation, and India has been eminently endowed with this gift of nature. There is much evidence that the exploitation of minerals like coal, iron ore, copper, lead, and zinc has been going on in Countryntry from time immemorial. The Mining industry in India is a significant economic activity that contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5%, but going by the GDP of the entire industrial sector, it contributes around 10% to 11%. Even mining done on a small scale contributes 6% to the entire cost of mineral production. The Indian mining industry provides job opportunities to around 700,000 individuals.
However, the first recorded history of mining in India dates back to 1774, when an English Company was granted permission by the East India Company to mine coal in Raniganj. M/s John Taylor & Sons Ltd. started gold mining in Kolar Gold Fields in 1880. The first oil well was drilled in Digboi in 1866 – just seven years after the first-ever oil well was drilled anywhere in the World, viz. in Pennsylvania state, the USA, in 1859. However, mining activities in Countryntry remained primitive and modest in scale-up until the beginning of the current century. After that, with progressive industrialization, the demand for and hence the production of various minerals gradually increased. After India became independent, the growth of mining under the impact of successive Five Year Plans was high-speed. There are ambitious plans in the coal, metalliferous, and oil sectors to increase the production of minerals during the 8th Five Year Plan and after that.
Company Profile: National Aluminium Company Limited (NALCO) is a Navratna CPSE under the Ministry of Mines. It was established on 7th January 1981 in the Public Sector, with its registered office at Bhubaneswar. The Company is integrated and diversified operations in mining, metal, and power. The Company is a low-cost producer of metallurgical grade alumina in the World, as per Wood McKenzie’s report.
NALCO is one of the country’s largest integrated Bauxite-Alumina-Aluminium- Power Complex. The Company has a 68.25 lakh TPA Bauxite Mine &21.00 lakh TPA(normative capacity) Alumina Refinery located at Damanjodi in Koraput dist. Of Odisha, and 4.60 lakh TPA Aluminium Smelter & 1200MW Captive Power Plant located at Angul, Odisha. NALCO has bulk shipment facilities at Vizag port to export Alumina/Aluminium and import caustic soda and also utilizes the facilities at Kolkata and Paradeep ports. The Company has registered sales offices in Delhi, Kolkata, Mumbai, Chennai, and Bangalore and 11(eleven) stockyards at various locations in Countryntry to facilitate domestic marketing. The Company is working on Greenfield and Brownfield expansion projects which include the ongoing 5th Stream Refinery Project of 1 MTPA capacity in the existing Alumina Refinery at Damanjodi (Brownfield), development of Pottangi bauxite mines, Utkal D&E coal mines in Odisha, the establishment of 6 lakh TPA greenfield and 5 lakh TPA brownfield Smelters in Odisha. The power for the proposed smelter expansions will be supplied from the 2400 MW coal-based power project in JV with NTPC.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=82 /]
Future Prospects: Company’s long-term security in raw materials, i.e., bauxite and coal, got a boost with the allocation of Utkal-D&E with a minable reserve of about 160 million tons and commitment for Pottangi bauxite deposit with a minable addition of about 75 million tons.
Aluminum is one of the critical industrial metals. Since November 2015, Prices have been hovering around the top while writing this. You can check the Price HERE