I heard from someone who is associated with Nalco that they have one of the best mines in the world with very good alumina percentage…which has significant cost advantage in the production of aluminium.
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This is indeed true. The quality of bauxite is such that to make alumina the temperature required is far lesser than what one needs with bauxite from Australia (major global source). This gives Nalco an advantage of almost US$100/t in alumina cost and around US$200/t in aluminum cost.
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Thanks! Since the 10 Yr CAGR Profit growth is higher for Hindalco, it seems something has positively impacted Nalco in just the last 10 years. Maybe some new mines won in the last 10 years with higher Alumina percentage as @N29 mentioned and as you also mentioned about energy savings which should be a big factor too.
Hindalco with Novelis and thus International Sales scores over in total sales but Nalco has the profitability edge till it has these mines running…
Btw the link has good information on mines auction in the current FY. So far 6 mines were auctioned for Bauxite and neither Nalco nor Hindalco was the winning party.
https://mines.gov.in/webportal/content/archived/details-of-successful-auction-during-the-year-4134
