India’s bauxite production is likely to reach to 49 MT by 2021: BMI report
The Dollar Business Bureau
Bauxite production in India is likely to increase to 49.4 million tonnes by 2021 from 22.08 million tonnes in 2016, according to a report.
The production of bauxite in the country is estimated to be 26.1 million tonnes in 2017, an increase of 18 compared to last year 2016, the report by BMI Research said.
The production of the metal is likely to reach to 49.4 million tonnes in 2021, the report said.
“We forecast Indian bauxite production to grow from 26.1 million tonnes in 2017 to 49.4 million tonnes in 2021, averaging an annual growth rate of 17.5% during 2017-2021, significantly higher than the annual average 3.9% growth over 2012-2016,” the Research report said.
The growth of bauxite production in India will speed up to serve the increasing demand of the aluminium industry in the country and growth is estimated due to the increase in the mining lease area which rose five times in the state of Odisha, it added.
Last year, the government of Odisha agreed to supply bauxite to the global natural resources company Vedanta Resources for its aluminium smelter starting March 2017 at Lanjigarh in Odisha through the state-run firm Odisha Mining Corporation (OMC).
“The Ministry of Mines increased the lease area for mining of bauxite from 10 sq. km. to 50 sq. km. in the state of Odisha to encourage development, and as part of the Union Budget, India reduced export duties for bauxite from 20% to 15%,” the report detailed.
However, the report said that that despite the positive outlook for the bauxite mining industry, strict environmental regulations and tensions in tribal areas may pose risks by slowing down the progress of new projects.
Bauxite is the primary ore of aluminium, a metal which is extensively used in automobile sector and for manufacturing aircraft.
Odisha, Chhattisgarh, Jharkhand, Gujarat, Maharashtra, Madhya Pradesh and Tamil Nadu are the major states producing bauxite in India.