BHUBANESWAR: With India aiming to become a global semiconductor hub, Navratna central public sector enterprise (CPSE) Nalco on Tuesday announced that its gallium extraction initiative is in advanced stage and commercial production of the rare material is likely to commence in two years.
The leading aluminium producer has collaborated with Bhabha Atomic Research Centre (BARC) and Heavy Water Board (HWB) on research and development (R&D) for gallium extraction and non-nuclear applications of heavy water. It has developed an indigenous technology to extract gallium, which is recovered as a by-product during the production of alumina from bauxite.
Nalco will set up a 10 tonne per year extraction plant near its alumina refinery at Damanjodi in Koraput district. Once operationalised, it would be the first company in India to produce gallium. China dominates global gallium production.
Director (projects and technical) Jagdish Arora said Nalco is the only company which is working on gallium extraction. “One prototype facility is being set up at the refinery plant in Damanjodi. It will be ready in eight to nine months and then required tests will continue for one year. Commercial production of gallium will start after the pilot phase is over. Nalco will have the exclusive right to produce gallium in India as so far none is producing the rare metal in the country,” he said.
Gallium is a soft silvery metal and mostly used in the electronics industry for semiconductors, LEDs and lasers, besides in medical imaging as a substitute of mercury in thermometers and in specialised alloys.
Nalco plans to invest Rs 35,000 cr to boost aluminium production in state
Nalco also announced its future expansion plans with a target to invest over Rs 35,000 crore to augment aluminium production apart from the operationalisation of Pottangi bauxite mine with a 111 million tonne (MT) reserve. Statutory clearances are going on and the mine is expected to be operationalised by June next year.
Addressing mediapersons here, CMD Brijendra Pratap Singh said Nalco has decided to go for brownfield expansion of its aluminium smelter along with a power plant in Angul for which land acquisition is underway. “We have a target to enhance our smelter capacity by 5 lakh tonne more per annum with an investment of around Rs 18,000 crore by 2030.
A captive power plant of 1,080 MW at an investment of Rs 12,000 crore is also in the pipeline. There are also plans to ramp up alumina capacity by 10 lakh tonne per year with an investment of Rs 5,677 crore,” Singh said.
As far as critical minerals are concerned, the CMD said, Nalco in a joint venture (JV) with Khanij Bidesh India Ltd (Kabil), has acquired five mines in Argentina. “We will soon appoint a consultant to explore the possibilities of commercial mining. If everything goes as per plans, these mines will be operationalised by the end of 2027. We are also planning to invest in Australia to buy some stakes in lithium mines. Similar possibilities are also being explored in Chile through Kabil,” he said.
On the US imposing a 50 per cent tariff, Singh said, it will not affect the company as it has turned its focus on the UK, which is now a free trade zone with zero tariff. “The UK does not have a smelter. Nalco can do a lot of exports to the UK that needs a considerable quantity of aluminium for its expanding EV and solar panel market,” he said.