Bauxite boom: The non-ferrous raw material tops Indian Government's production record for FY24

India's bauxite mining sector reports growth in the non-ferrous segment, accounting for 23.93 million tonnes of output in FY 2023-2024. Production until April 2024 has been 86 thousand tonnes greater Y-o-Y.

Since the past five fiscal years, bauxite mining has seen an overall steady boost, reflecting a cumulative 23.69 million tonnes of output during FY 2018-2019, with a slight decrease of 21.82 million tonnes during FY 2019-2020 and 20.38 million tonnes in FY 2020-2021. Production again picked up, with 22.49 million tonnes in FY 2021-2022 and 23.84 million tonnes in FY 2022-2023. The data pulled out from the Ministry of Mines of the Government of India shows that bauxite tops the chart for total ferrous and non-ferrous mineral production in India.

To enhance bauxite mining operations, the Ministry of Mines has decisively proposed a reduction in the benchmark price of bauxite, which is critical for calculating the estimated value of resources and the premium in auctions. This proactive measure follows numerous complaints from mining companies asserting that the current formula for determining the Average Sale Price (ASP) of bauxite—linked to the aluminium price on the London Metal Exchange (LME)—yields an unacceptably high conversion rate. Under the existing Mineral Concession Rules of 2016, this conversion rate stands at 6.4 per cent, indicating a pressing need for reform. Ministry of Mines has proposed to reduce the conversion rate for metallurgical grade bauxite to 4.9 per cent after a committee constituted for ASP submitted its report.

AL Circle has come up with a meticulously compiled, industry-focused report 'A comprehensive analysis of Bauxite Residue - Red Mud,' which addresses both the challenges and opportunities of the bauxite production and its by-products. This report has all the necessary information to understand and manage 'red mud' a bi-product of bauxite effectively, ensuring one is well-prepared to tackle its complexities.