By Bizodisha Bureau, Bhubaneswar, June 14, 2024: The public sector National Aluminium Company (Nalco) on Friday executed a mining lease deed with the Odisha government pushing its share price by 4.5 per cent to Rs 195 apiece on the BSE .

Nalco, on Thursday, said it has executed a mining lease deed with the State Government of Odisha over an area of 697.979 hectares for Bauxite Mines in Pottangi Tehsil, Koraput District.

“The mines have an annual production capacity of 3.5 million tonnes and have reserves estimated at 111 million tonnes, projecting a mine life of 32 years. Upon obtaining the remaining requisite statutory clearances, the mine is expected to become operational soon. The mined Bauxite would be transported to Nalco Refinery at Damanjodi through an overland conveyor of 18.5 kilometers,” Nalco said in its exchange filing.

Nalco is a ‘Navratna’ CPSE under the Ministry of Mines, Government of India. The company is a Group ‘A’ CPSE having integrated and diversified operations in mining metal and power. It is engaged in the business of manufacturing and selling of Alumina and Aluminium.

In the March quarter, Nalco reported a consolidated revenue of Rs 3,600 crore, down 3 per cent year-on-year (Y-o-Y), but up 7 per cent quarter-on-quarter (Q-o-Q). Its consolidated Ebitda stood at Rs 1,100 crore, up 45 per cent Y-o-Y and 43 per cent Q-o-Q, with consolidated Ebitda margin of 30.9 per cent in vs 20.9 per cent in Q4FY23 and 23.1 per cent in Q3FY24.

Adjusted for an exceptional item of Rs 430 crore, due to the reversal of royalty expenses, Nalco’s profit after tax stood at Rs 680 crore in Q4FY24, up 37 per cent Y-o-Y and 44 per cent Q-o-Q.