Coal blocks Hindalco

We sometimes forget that there is another major aluminium-producing country in the world – India.   The big three aluminium companies in India have had a torrid time in recent months, especially Vedanta and Hindalco.

We reported recently on what was happening with Hindalco – they lost their rights to a coal mine, and found themselves not even able to re-bid for the coal block. The new Indian government has removed those rights, and ordered an auction of the rights. But more than that, they have also allocated certain blocks as being exclusively for the electricity industry.

Here’s how we put it in the recent monthly India Report, published by AZ China.

The re-allocation of coal mining blocks ordered by the Indian Government dashed Hindalco’s hopes of being able to bid again for the Mahan coal block to meet the coal requirements of its new US$ 170 million Mahan Aluminium smelter, the block being specifically marked for the power sector.

The coal block had earlier been assigned to a JV between Essar Power and Hindalco, which meant that only Essar Power could bid for it. Hindalco’s hopes to bid and retain the Talabira 1 coal block which was already operational, were also dashed as the block was reserved for the power sector.

Hindalco will now have to scout for mines falling under the ‘non-regulated sector’ near its smelters, as it will end up facing higher freight costs if it should end up securing mines at a distance from its required locations.


The India Report is just about the only reliable, independent source of information on India’s aluminium and associated raw materials.  The India Report gives a full analysis of the industry and the market, as well as import/export data about all the major raw materials.

Here’s a contact form. If you are interested in seeing more information about what’s happening in India, let us know and we will answer your questions.

Please send me more information about AZ China’s India Report.

Leave a Reply

Your email address will not be published. Required fields are marked *