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Thursday, April 22, 2021

Hindalco gains 2% on signing bauxite residue deal with UltraTech Cement

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NEW DELHI: Shares of Hindalco Industries gained 2 per cent in Friday’s trade after the Aditya Birla group company entered into a memorandum of understanding (MoU) with another group company UltraTech Cement to deliver 1.2 million tonnes (mt) of bauxite residue, also known as red mud, annually to UltraTech’s 14 cement plants located across seven states.

With this, Hindalco will become the world’s first company to achieve 100 per cent red mud utilisation across three of its refineries, the company said in a BSE filing.

Following the development, the stock rose 2.06 per cent to hit a high of Rs 203 on BSE.

Red mud generated in the alumina manufacturing process is rich in iron oxides, along with alumina, silica and alkali. The cement industry has developed the capability to process red mud as a replacement for mined minerals such as laterite and lithomarge in its process. Hindalco is supplying red mud to UltraTech’s cement plants where it has been proved to be an effective substitute for mined materials, successfully replacing up to 3 per cent of clinker raw mix volume, the company said.

Hindalco’s alumina refineries are currently supplying 250,000 metric tonnes of bauxite residue to cement companies every month, making Hindalco the world’s first company to have enabled such large-scale commercial application of bauxite residue, the statement added.

In the current year, Hindalco aims to achieve 2.5 million metric tonnes of bauxite residue utilisation.

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