NALCO Plans Capacity Expansion and New Refinery; Chile Faces Mining Tax Challenges Amid Lithium Investment

NALCO targets a 0.5 mtpa capacity expansion with commissioning expected by December 2030, alongside a new 1 mtpa refinery by June 2026. Meanwhile, Chile's mining sector warns that a temporary diesel tax adjustment may reduce competitiveness, with the industry facing $100 million in costs. Albemarle files for a $3.1 billion lithium project in Chile, incorporating direct lithium extraction technology aimed at boosting efficiency and reducing water usage.

Published Mar 26, 2026

NALCO is pursuing a 0.5 mtpa capacity expansion with a project report due by June/July 2026, aiming for commissioning by December 2030 and a combined capex of ₹30,000 crore. The new 1 mtpa refinery is expected to start commissioning in June 2026, with a target of 0.3 mtpa for FY27.

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In FY24, NALCO ramped up production at its Utkal D coal block to 2 mtpa, with plans to produce 4 mtpa by FY26, incurring a capex of ₹1,700 crore. In Chile, a temporary diesel tax adjustment is projected to cost the mining sector approximately $100 million, threatening competitiveness. Albemarle has filed for a $3.1 billion lithium project that will utilize direct lithium extraction technology, enhancing efficiency while addressing water usage concerns.